21 September 2006
New research from credit reference agency Callcredit has shown that students could graduate with a collective debt of around £5 million.
The new research found that on average each student who starts a course this autumn will graduate with debts of £15,000, which is double the £6,161 average debt for graduating students seven years ago.
Mel Mitchley, Callcredit industry relations director, said: "Life is financially harder for students now than it has ever been and the decisions people make about their borrowing while they are studying will impact on their finances for years to come, so it's important they have the information they need to make the right decisions for them.
"Student bank accounts offer good deals on overdrafts while people are in further education but can revert to higher rates after graduation.
"And credit cards are generally priced according to risk – students could end up paying uncompetitive rates as they generally have no credit history."
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