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Students 'more realistic than parents about debt'
Young people heading to university are more realistic over the debt issues they will face than their parents, new research has revealed.
The study by the Association of Investment Companies (AIC), which may interest those seeking loans to fund education, found that the estimated average amount of debt set to be built up by graduates in 2011 is £21,198.
While 34 per cent of students rightly predicted they will graduate with over £20,000 of debt, just 19 per cent of parents made the same estimate.
Perhaps more worryingly, a quarter of parents feel their children will graduate with less than £10,000 of debt.
Annabel Brodie-Smith, communications director at the AIC, said: "It is worrying that so many students and their parents are still underestimating the true cost of going to university.
"Many young people go to university to enjoy some of the best years of their life but the reality on graduation is a huge financial burden which will take years to pay off."
Research by Sainsbury's Finance recently suggested that £37 million of personal loans were taken out to fund education courses during 2009.