<< back to previous page
Banks should accept 'student responsibility'
Thursday, 09 August 2007
Lenders should act more responsibly and not offer students excessive funds that they will not be able to repay, a high street bank has claimed.
With student debt on the increase it has been suggested that offering large overdrafts and credit cards to university applicants will only add to their graduate debt.
James Thorpe, an HSBC spokesperson, claimed that students needed to borrow more because of the advent of top-up fees.
He said: "One of the things which students need to factor in now is borrowing huge sums for other areas. They are likely to be leaving university with at least £10,000 worth of debt, which is largely down to student fees."
Underling the role of banks in student debt, he added: "Of course we do have a responsibility not to lend them any more money than they can actually cope with."
A Lloyds TSB survey has shown that 30 per cent of students now intend to live with their parents in order to cut university costs.