The estimated average student debt has increased by 15% to £22,131 when compared to last year, figures by Lloyds Bank show.
The report of YouGov data and the results of a survey of 1,000 students, reveals that the main driver of this increase are first year undergraduates. First year students now expect to leave university with around £30,000 of debt.
However, the report also shows that expected levels of debt across all stages of higher education have increased. Just under half of full-time students surveyed said that their overall debt upon completion of their studies would be over £20,000.
The survey results give a significant insight into how students view their financial situation:
- 44% said they were concerned about their situation
- 19% believe they will never pay back all their debt
- 31% think it will take them more than 20 years
- 54% are not able to, or are only just able to, meet their monthly outgoings
- 40% meet their monthly outgoings with surplus cash left over.
Despite the variance in financial positions that students find themselves in, 58% of those surveyed said they felt confident of getting a job after graduation in their preferred industry, while 34% were not confident of this outcome.
Claire Garrod, current accounts director at Lloyds Bank, said:
“Estimated levels of debt are continuing to rise for students, with the average debt now at over £22,000. This is obviously a significant amount, however the number of students concerned about this debt has dropped this year and the majority are confident about their job prospects after graduating.
“Students should look for accounts that offer an interest and fee-free planned overdraft, as well as discounts and cashback offers. Money management tools and banking apps can also help students to manage their money on the go and feel more in control of their finances.”