Research commissioned by the Association of Investment Trust Companies concludes that most teenagers...
Research commissioned by the Association of Investment Trust Companies concludes that most teenagers between 15-19 years of age and their parents are walking blind into a mountain of debt because of insufficient provision for tertiary education.
About half of teenagers and a third of parents surveyed said they expect average student debt to be less than £6,000 after a typical three-year degree course.
That compares to the £11,000 that a Barclays survey has already identified as the true average debt load caused by studying.
About four in 10 parents said they did not save anything for their children's further education, while an additional three in 10 said they saved a maximum of £300 per year.
Another 25% said they saved from £300 to more than £1,000 per year for each of their children.
However, because the average total cost of pursuing tertiary education is now above £7,000 per year, even those teenagers lucky enough to have parents capable of saving more than £1,000 per year may find that their financial ends do not meet when they get to university.
Graduating students can expect an average gross starting salary of £20,000, the AITC says, but once debt repayments are added to tax, rent, bills and travel costs, it leaves them with less than £150 of additional disposable income per week.
Nearly half of those teenagers with savings say they intend to spend the money on education, while a quarter say they would rather spend the money on a car, the AITC survey says.
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