July 24, 2006

Many university students and their parents are unprepared for the level of debt that they could end up facing through credit cards, student loans, overdrafts and other products by the time they graduate.

According to the Association of Investment Trust Companies (AITC) financial concerns are a worry for 55 per cent of 16 to 19-year olds and for 45 per cent of all parents.

Despite these worries, many people are underestimating the amount of debt that can be built up, with most parents expecting their children to end up with a debt level of around £7,080.

The national average amount of money owed on graduation in the UK, however, is £13,500.

Annabel Brodie-Smith, communications director at the AITC, said: "It's alarming that so few of tomorrow'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."

Help has been offered to these students, as the Financial Services Authority has announced that it is launching a student money programme, to offer advice and guidance at 17 universities across the UK.