The average undergraduate beginning their degree programme this year will leave university in 2009 with debts of £15,000, Callcredit has warned.
The figure is more than double the £6,161 owed by the average new graduate in 1999.
To help students with their financial learning curve, Callcredit has released a new guide to money matters.
“Life is financially harder for students now than it has ever been,” said Mel Mitchley of Callcredit.
“The decisions people make about their borrowing while they are studying will impact on their finances for years to come, so it’s important they have the information they need to make the right decisions for them.”
Low-cost student loans make up the largest amount of student borrowing, which starts to be paid off automatically when a graduate begins to earn over £15,000.
Growing numbers of students are filing for insolvency in an attempt to escape their student loans, however.
“Bankruptcy is not an easy option and changes in the law in 2004 mean that any student who went down this route would still be liable for their student loan,” warns Mrs Mitchley.
“And quite apart from this, bankruptcy has serious consequences in terms of current and future assets.
“Any hopes of future home ownership may be ruined and even something as simple as opening a bank account may become difficult.”
© Adfero Ltd