Student debt has increased 550% in nine years

Average student debt today has increased by nearly 550% when compared with 1992, according to the Tenth Barclays Student Survey released last month. The average student debt recorded 10 years ago was £1095, compared with the 2001 figure of £5961--the highest level of average debt recorded since the survey began.

According to the bank's figures, 95% of students are currently in debt, with 80% also balancing a job as well as their degree in order to live. Thirty nine per cent of students are employed for an average of 15 hours a week--a figure well above the 10 hours recommended by the National Union of Students (NUS).

Barclays Bank estimates that the total amount of UK student debt now stands at a staggering £4856m, even after total parental funding of £508m is taken into account. The high levels of debt are partly explained by the gradual abolition of student grants and the introduction of tuition fees two years ago. A main source of income for most students is borrowed money from the Student Loans Company: 2.8 million students have now taken out loans, a 1000% increase since 1992. The number of students using credit cards has also increased, rising from 6% to 35% over the past 10 years.

The NUS is keen to emphasise that because of the timing of the Barclays survey the amount of student debt accrued due to tuition fees has not yet been fully uncovered. Owain James, the NUS national president commented: "Since 1997, students have been contributing more than £1.6bn per year towards their education. The NUS expects next year's graduates to be leaving university with average debts of £12000. For students from low income families and students undertaking long courses such as medicine these levels are even higher. The current system undermines the government's aims to increase participation, widen access, and get more people into understaffed professions. That is why the NUS is calling for an end to up front tuition fees and an introduction of targeted grants."

The comments come two weeks after the prime minister, Tony Blair, announced that the government was ready to rethink the funding of higher education. Pressure groups hope that this may be the first step towards a package of student support that would include the abolition of tuition fees, the reintroduction of maintenance bursaries for underprivileged students, and a harmonisation of means testing for others, which is currently available only in Scotland.



studentBMJ 2001;09:305-356 September ISSN 0966-6494