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Graduate debt 'inevitable'
Friday, 29 June 2007
Life after graduation
Most people who decide to further their education by going to university will leave with some debt, according to one expert, but the trick is to keep it under control.
Frances Walker, spokesperson for the Consumer Credit Counselling Service (CCCS) has said that debt is simply a part of life for a lot of students and graduates.
"I'm not suggesting you go out and run up hundreds of [pounds] of debt or anything, but you have to accept that going to university nowadays does involve debt," she said.
But Ms Walker stressed that students and graduates should restrain themselves when it comes to how much they borrow for the sake of their future financial situation. The Student Loans Company revealed recently that students borrowed £3 billion in the last financial year.
While the system of borrowing to finish education is "premised on the idea that you have a greater earning capacity when you leave university", she warned borrowing too heavily can affect graduates for years to come.
"A couple, for example, who might be getting married or setting up home together if they've both got student debts then that could amount to quite a significant amount of money," Ms Walker said.
According to the Student Loans Company figures, the total outstanding debt owed by current undergraduates as well as graduates repaying loans is more than £18 billion.