Graduate debt 'averages £13,252'

Students leaving university this year graduated with average debts of £13,252, an increase of 5% on last year's figures, a survey by the NatWest bank has revealed.

Taking into account the new university fee structure on the horizon, the 2006 NatWest Student Money Matters survey estimated that sixth formers starting university this year could expect to graduate with an average debt of £14,779 - an increase of £1,099 on last year's figures.

However, the survey found that in spite of the figures, 79% of this year's new university students believed that going to university would help them with their future job prospects, while 53% wanted to use the opportunity to train for a specific career such as medicine and law.

However, the NatWest said that the average starting salary for graduates fell this year, from £14,090 in 2005 to £13,860 in 2006. However, despite the lower salaries, the survey found that 56% of respondents said that they had landed a good job, while 41% said they were now totally independent from their parents.

The NatWest said that students were now increasingly relying on part-time jobs to finance their life at university. The survey found that 87% of this year's intake of students said that they would have to get a part-time job.

The new system of university fees will mean that full-time student in England will now have tuition charges of up to £3,000 per year to pay on top of any other student loans. These fees were only have to be repaid once graduates are earning at least £15,000 per year after graduation.

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."

(KMcA)