Graduate debt has reached almost £2.5 billion, with the average student owing £13,501.
The 183,000 students who are set to graduate this year will simply be adding to the already fast increasing levels of student debt in the UK.
The average debt increased by 12 this year, and findings from Barclays eleventh Annual Graduate Survey suggest that this will continue to escalate.
"As predicted, graduate debt is continuing its upward trend, due to a number of factors including rising living costs, and a more resigned attitude towards debt," said the head of student and graduate banking at Barclays, Jeremy Law.
"If this trend continues," he said, "students starting a three year course this September could be graduating with debts of almost £20,000."
Mr Law explained that this would have a massive influence on their financial future.
"Graduates will find themselves with debts for years to come which may affect their ability to buy homes and invest in pensions."
The cheapest way of borrowing, the Student Loan Company, is still the most popular source of funding, with 87 per cent of students in the North West opting for this route.
Overall graduates in there have the least debt in the UK, with levels averaging £12,532.
Mr Law added: "These levels of debt may act as a deterrent to some people considering going to university."
However, despite the rising levels, more than 75 per cent of students still believe going to university to be a worthwhile exercise.
Barclays highlights student debt problem
Financial Services
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Barclays highlights student debt problem
Thu, 14 Apr 2005
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