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Nearly One in Four University Students Believe They’ll Be Bankrupt By 30
Young people are having a tough time financially. Pay isn’t keeping pace with living costs, accommodation is beyond the reach of even those with relatively good incomes. Going to university, the traditional route to professional careers and high earning potential now has a sting in its tail in that there are substantial student loans to repay, which is leaving them with unmanageable debt.
University has never been more expensive and earlier this year, figures were released which show that nearly a quarter of undergraduates hold the belief that by the time they hit 30, their student debt will have bankrupted them. Indeed, four fifths of students are expected to be unable to repay their student debts in full.
While many of us who graduated in decades gone by, particularly before the 1990’s, enjoyed grants and subsidised tuition, with the very real prospect of a very well paid job and the chance of a decent career afterwards, this is not so for more recent and for forthcoming graduates.
Students leaving University today and beginning their careers, do so already burdened with student loans which can exceed £50,000. This is leading to a significant proportion of graduates being of the opinion that they’ll never earn enough to be able to pay off what they’ve accrued while trying to better themselves and believing they’ll be bankrupt by 30, hence this group of young people being labelled ‘Generation Debt’.
Older Millennials have received little to no financial education
Generation Debt, the older ‘millennial’ group – those in their mid-twenties to mid-thirties, have come of age during the financial crisis. Debt is just a fact of life for them and it seems, despite the world being awash with financial problems, they’ve received little financial education or even none at all. Many admit to not knowing how debt or interest works, or indeed how they’ll ever pay off their student loans.
Should Generation Debt Be Given Helping Hand?
In February, the Treasury Select committee questioned the practice and fairness of charging students above market rate interest rates on their student loans. While debate takes place and changes are considered to the whole system of financing university education, this still leaves many younger people with uncertain financial futures.
At Lines Henry, we’re accustomed to helping businesses and individuals in financial strife and as experts in all aspects of insolvency, we’re well practised in finding solutions and securing better outcomes for those who seek out our help.
As with any other form of financial worry, there’s always a solution which will improve matters and the earlier we’re consulted, the more options will remain on the table as possible courses of action.
If you’re worried about your existing student loan, or any other debt that you may be building up, we offer a free consultation and the option to discuss your worries in order to get advice on where to go next.
Speak to us, we can help.