New rise in student debt

Students are leaving university with average debts of £12,180, just over £4,000 more than last year, figures show today.

About 59 per cent of people graduate with debts of more than £10,000, nearly double the number in 2003.

A third of students think it will take them more than 10 years to clear their debts, according to NatWest.

A three-year degree costs £23,787, but only 35 per cent of undergraduates have a part-time job - 18 per cent less than last year - taking home an average of £4,000 a year, according to figures compiled by Virtual Surveys.

The group believe that the rise in debt may be attributed, in part, to the fact that fewer students are receiving financial help from their parents.

The increased cost of living and the continued impact of tuition fees have also been factors. A quarter of students received regular money from their parents to help them through university, while a similar proportion received funds as and when needed.

Over a third of students did not receive any financial help from their parents, up from 26 per cent last year.