Tuesday, November 14, 2006
Category:
Consolidation
As A level students get their results, the 2006 NatWest Student Money Matters survey shows that this years freshers expect to pay £33,512 for degrees lasting 3 years.
This has increased from last years figure of £28,600 and as a result, the new intake of students expect to graduate with debts of around £14,779.
The good news is that though graduate debt continues to rise, this is at a much slower rate than previous years. Average starting salaries are not set to help graduates pay off their student debts either, with the figure falling from £14,090 in 2005 to £13,860 in 2006. However the number of graduates confirming that they have a job ready for when they graduate has risen from 18% last year to 23% in 2006.
Just over half of the students surveyed by NatWest admitted that they were concerned about their debt levels. Sixth formers starting university this year were mainly concerned about money being tight, and financial worries outweighed concerns about studying and exams.
Mark Worthington, Head of NatWest Student and Graduate Banking, said: ‘New students are clearly much more clued up about the financial realities of university than in previous years. Despite the anticipated cost of university rising by 17% on 2005, students are taking it in their stride and cutting back on their spending, meaning they only expect to graduate with 8% more debt than those not paying the increased tuition fees.’
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Graduates who find themselves bogged down with various credit card debts along with outstanding loan payments, could consider wrapping multiple payments into one with a
debt consolidation loan if they’re a homeowner. Repaying borrowing over a longer term will however increase overall interest charges.
