Govt defends student support amid rising debts

Tuesday, 14 August 2007 12:00 AM

The government has again been forced to deny top-up fees are adversely affecting students.

A clutch of surveys show student debt is rising since the introduction of top-up fees. Student campaigners warn this could deter young people from applying to university or increase drop-out rates.

The Push Student Debt Survey found undergraduates starting last year - the first generation to pay £3,000 tuition fees - will owe nearly £17,500 by graduation.

Despite government support packages, debt is forecast to continue to rise, with this year's freshers expected to owe an average of £21,500 by graduation.

Johnny Rich, series editor of the Push.co.uk universities guide, said government financial supports are not working.

"This increase is not just another rise," he warned. "Some students are facing real financial hardship."

The National Union of Students (NUS) said the results were "extremely worrying". NUS president said the survey shows "unequivocally" that graduate debt is increasing because of top-up fees.

The Department for Innovation, Universities and Skills argues that record application numbers show tuition fees are not putting students off higher education.

A spokesman said: "A generous package of support is available to students, particularly those from low income families, who can receive maintenance grants of up to £2,700 per annum."

Gordon Brown granted further student support soon after taking office. From 2008-09 two-thirds of full-time students will be eligible for a full or partial grant, compared to half of undergraduates now.

Push.co.uk found students in areas with the most generous support measures graduate with the lowest debts.

Scottish students, who benefit from extensive funding, accumulate an average of £2,344 a year, compared to the £4,295 racked up by their English counterparts.

Also out today, a study by uSwitch said graduates can expect to spend 11 years clearing their debts. The price comparison service warned this could have a knock-on effect on their ability to marry, buy property or start a family.

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