Graduates face 10-year debt trap

A
fifth of all students in England and Wales cannot see a way out of the debt
trap for at least 10 years after graduation, according to research.

The
findings also show the level of debt for each student has risen by almost half
(44 per cent) over the past 12 months.

After
leaving education, students now have an average debt of £8,125 – an increase of
£2,489 compared to last year.

The
poll, by NatWest bank, also found that graduates are returning to the family
home because of the debts, with 64 per cent moving back in with parents.

These
difficulties are being compounded by falling pay, with the average starting
salary dropping from £13,422 to £12,659.

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The
financial difficulties are also affecting the learning process, with 43 per
cent of current students admitting to missing lectures because of work.

By Ross Wigham