Students ‘could face bad debt’
Students could be left with bad debt unless they are adequately advised on financial products, it has been warned.
Mike Naylor, personal finance expert at advisory service uSwitch.com, suggests that many students may be left unaware that they are required to pay interest on borrowing such as their student loan.
His comments follow the news that debt among university graduates has risen by 167 per cent over the last decade.
“In the majority of cases, graduates will earn a higher than average salary in the long-term and are potentially an important source of ongoing income to lenders,” Mr Naylor states.
But he urges the Student Loans Company to ensure its customers are adequately informed.
“Otherwise students will start their careers shackled to debt which limits their options and narrows their horizons,” he predicts.
The website previously forecasted that the number of insolvencies in the UK could rise to 112,588 by the end of the year.
Those who find they are in a bad debt situation following graduation could benefit from expert advice.
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