Graduate students will take an average of 11 years to pay their debt after leaving university, a new study has revealed.
Most recent students find themselves struggling financially while looking for their first graduate job. Has your university degree left you in debt?
Graduates now face an average debt of £21,198 after finishing university, which will take them an average of 11 years to pay back. As a result, more than a half (56%) of recent students said their university fees don’t allow them to save; 38% of those surveyed said their debts forced them to put their life on hold and postpone other life decisions such as getting married (29%), starting a family (30%) or buying a home (48%).
Despite accumulating massive debts, students and recent graduates don’t seem to be financially savvy, which makes budgeting and money management even worse. Four in ten graduates don't even know the rate of interest charged on their student loan and 14% have no idea what they are being charged on their overdraft.
In fact, another report from HSBC found that over 5 million people aged under 25 don’t know how much interest is on their savings accounts. The same report also showed that approximately two thirds of young savers don’t even know their current balance.
On top of this, finding a graduate job straight after leaving university is a daily struggle that many ex students are facing in the current job market. Currently every graduate job offer has an average of 83 applicants, meaning employment prospects don’t necessarily get much better after graduating.
If you identify with this situation, focus on improving your CV and getting a better hold on your finances. The more information you have at hand, the less likely is that you’ll waste money on unnecessary expenditure such as unarranged overdraft fees.
Are you aware of the ins and outs of your banking situation? Did your university fees leave you in debt?