University costs 'underestimated' by students and parents alike

30 July 2007
Both parents and students are underestimating the cost of going to university, according to new research.

The average debt upon graduating is £13,252 - £5,000 more than original expectations, the Association of Investment Companies (AIC) has reported.

As a result, it added that 31 per cent of students are choosing to live at home in order to cover costs and save for the future.

Similarly, 93 per cent of parents told the firm's annual survey that they would make sacrifices in order to help their child through further education.

"With some long-term financial planning and if it's at all possible, saving for your children from an early age can give them a financial head start in life," said Daniel Godfrey, director general of the AIC.

A university debt could add to the UK's personal debt, which money charity Credit Action has estimated to be £1.3 trillion.

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