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Banks must 'take responsibility' for graduate debt
Friday, 03 August 2007
Life after graduation
High street banks should 'take some responsibility' for the rising level of graduate arrears, a leading debt consultancy has claimed.
Thomas Charles & Co suggest that the banks are partially to blame because the high overdraft limits and credit cards they offer to students encourages them to borrow more.
According to the company the situation is worsened further by student misconceptions of how to handle debt once they become graduates.
James Falla, managing director of Thomas Charles, said: "I think the banks themselves have to take some responsibility."
He added: "Now, as a student at university, not only can you take your standard Student Loan Company loan to support yourself, you're also almost guaranteed to be offered an overdraft facility by your bank. And you're almost guaranteed to be offered a credit card by your bank."
However future graduates could benefit under a proposed student loan 'repayment holiday' period of up to five years.