More than half of students fear unemployment

According to research, 55 per cent of students are worried they will be unable to find work after leaving university due to the effects of the recession.

A shortage of money could lead to graduates abandoning their career goals, the survey suggested, with one in three students saying they would look for a higher paid job rather than their career vocation in order to pay off their debt.

Graduates are poised to leave university burdened by record levels of debt, with those leaving university in 2011 forecast to owe an average of £21,198, according to university guide push.co.uk.

In 2009 the average debt of graduates was £15,812, while for those starting university courses in September – most of whom will graduate in 2013 – the figure is likely to rise to £23,500.

This projection could increase further if the government lifts the current cap on tuition fees following an ongoing review into university funding being led by Lord Browne, the former BP chief executive.

The new survey, carried out by the Association of Investment Companies (AIC), an investment trade organisation, showed that half of students expect to take more than 10 years to pay off their debts incurred at university.

Results also indicated the recession has been a burden on parents, with 82 per cent saying it has increased the financial strain of supporting their children through university.

The AIC said: "Many young people go to university to enjoy some of the best years of their life but the reality on graduation is a huge financial burden which will take years to pay off."
--By Nick Collins,15 Jul 2010