Student debt heads to £11,000
GRADUATES left university with debts averaging nearly £11,000 last year, latest research shows. Their average salaries have fallen by £1,000 in one year.
The 17% year-on-year rise in average debt represents a sharp slowdown in growth compared with 2001's 44% jump. And banking group Barclays predicts the increase this year will slow to 13%, taking average debt to £12,500.
'Finally the brakes are being squeezed on student debt,' says Debbie Shipley, head of student and graduate banking at Barclays. 'The slowdown comes after we have seen the full impact of tuition fees being introduced and student grants being withdrawn.'
Students in the Midlands are leaving university with the highest debts, owing an average of £12,079, followed by those in the South West at £11,795. Those studying in the North West are racking up the least debt at £10,644, while students in London are leaving university owing an average of £11,380.
The research also found that just 12% of students now leave university debt-free, down from 15% in 2001.
The Student Loans company remains the most popular place for students to borrow money. Students owe the group an average of £9,192, while they owe banks an average of £2,148, and those with credit cards have debts on them of around £903.
The research also found that the average graduate salary fell to £14,000 in 2002, from £15,000 the previous year.
The number of graduates who have permanent jobs in their chosen career six months after leaving university has also fallen to 35% from 46% 12 months ago, while 33% are in short-term employment - from 29% in 2001.
