Debt-fearing students shun universities

Half of sixth-form students who do not go to university blame fear of debt for their decision to leave education, according to a new survey.

The NatWest annual Money Matters survey ofmore than 2,000 sixth-formers, undergraduates and graduates found that many young people abandoned their studies because of tuition fees and the prospect of graduating with average debts of £10,000.

The research also found it took graduates longer to repay their debts, with students now taking between four and 10 years to do so.

One third of undergraduates have contemplated dropping out of university because of debt, compared to just 14 per cent in 2000.

Seventy per cent of current students said they were concerned about the amount of money they owed, compared with 46 per cent two years ago, while just 5 per cent of sixthformers and undergraduates believed they would finish their studies without going into debt. Money worries were cited as the biggest concern about going to university by more than two thirds (68 per cent) of sixth-formers. More than eight out of 10 pupils said schools should teach them how to manage their money.

The survey also found that the vast majority of school leavers believed they would have to take a part-time job to support themselves through university, with 87 per cent anticipating the need to do so.

However, although tuition fees and higher accommodation costs make going to university an increasing struggle financially, it is still seen as a worthwhile investment by school-leavers.

Recent research from the Careers Services Unit found that the average graduate salary was now just over £16,000 and that graduates in their twenties earned an average of £6,000 a year more than contemporaries who had never been to university.

A spokesman for the Department for Education and Skills said that fear of debt was one of the issues ministers hoped to address in their current review of student funding.

"Ministers have said that one of the priorities is to make sure that debt and the 'fear of debt' is not turning off students from going to university," he said. "Graduates can expect to earn on average £400,000 more over their lifetime than the national average and [pupils] should see going to university as a worthwhile investment."