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Future graduates deterred by rising costs
Friday, 27 July 2007
Life after graduation
Prospective graduates are being put off university by its increasing costs, new research has shown.
As the average graduate leaves with debts of up to £30,000, 24 per cent of young adults now believe that a degree is pointless waste of time and money.
The research, by Engage Mutual Assurance, suggests that 26 per cent of parents also believe the process to be an expensive act of futility.
As university becomes more expensive more than half of potential students claim they cannot rely on their parents to help fund them and 46 per cent of parents would expect their offspring to finance themselves.
Karl Elliott, at Engage Mutual Assurance, said: "The financial situation faced by todays young people is very different from that experienced by their grandparents.
"Whilst it is encouraging that many young adults recognise the need to save for their future, increasing costs of university and housing mean that young adults will have to think carefully about how much they save and how they invest."
Graduate debt fears may be eased by the recent government proposal of a five year loan 'repayment holiday', which could save university leavers up to £850.