You are here: Home - Uncategorized -

The cost of learning

Written by:

Many parents and students significantly underestimate the debts they will run up if they go on to further education. Mike Collins investigates  
It is the ambition of many young people to continue their education once they have left school and study for a degree at university.

However, laudable though this is, many underestimate the scale of the debt they will incur, according to a recent report by the Association of Investment Trust Companies (AITC). Most sixth formers expect to owe about £6,000, whereas the AITC’s research suggests the true figure is more likely to be double that.

For example, students aged between 16 and 19 expect to graduate with debts of £6,199, just over £1,000 less than the £7,208 last year’s respondents expected to owe, despite tuition fees of up to £3,000 a year being introduced in September.

Parents calculated approximately the same low estimates as the students, saying their child would owe £7,080 by the time their courses ended. However, the AITC says this year’s graduate owes an average of £13,500.

Annabel Brodie-Smith, spokesperson for the AITC, says: “It’s alarming that so few of today’s graduates or their families really comprehend the financial implications of going to university.

“This year parents and future students have underestimated by a greater margin the amount of student debt they will face on graduation despite the publicity surrounding the introduction of top-up fees from September.”

Higher Education Minister Bill Rammell says: “Our new student financial package is designed so that everyone with the ability and desire has the opportunity to go to university.

“Students can study first and repay only when they are earning over £15,000.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Travellers facing insurance suprises

Holidaymakers’ travel insurance may not cover them for the ‘security threat’ currently facing the UK. Andrew Partridge reports