Helen Barratt, London

Student debt has soared over the past three years, according to the latest NatWest annual survey. The bank anticipates that students finishing in 2002 will feel the full impact of tuition fees and the removal of grants, graduating with record debts of around £10 000 ($14 500; €16). The average graduate debt has increased by a massive £6700 since 1999.

Graduate starting salaries have also risen with today's average graduate earning around £13 500. Many are guaranteed a considerable hole in their pay packet, however, as monthly debt repayments of £200 are now the norm.

Contrary to expectations, the costs do not seem to deter students, as only a quarter of those asked considered not going to university because of tuition fees—a big decrease from over half in 2001. More than two thirds of 2002 graduates feel that tuition fees are not a fair way of students contributing to the cost of education; when questioned about government funding, however, 45% prefer the current system of loans while 44% prefer the proposed alternative of maintenance grants and higher graduate taxes.

Overall, less than 20% of students receive no financial support from their parents. Despite the rise in debts, 92% did not consider dropping out of university to get a job to pay off their debts, and most graduates do not have a job lined up before leaving college. Job satisfaction is still the most important factor when graduates are looking for their first job, although only 58% cited enjoyment as their number one priority, compared with 84% in 2001.

Ann Marie Blake, head of NatWest student and graduate banking said, “For the majority, university is still seen as a worthwhile investment and nine out of ten graduates in this year's survey are adamant that debt did not put them off finishing their course. When they do finish, there are some practical things they need to do to make sure they can still enjoy life and the fruits of all their hard work, as well as keeping on top of repayments: sitting down with your graduate bank manager is a good start.”

The National Union of Students, however, claim that the figures provide further evidence that the government's funding policy has badly failed students: the president, Owain James, said, “Although shocking, these figures do not come as a surprise. The government badly fails students as yet another survey now has proven.”