Students Earnings Could Fail To Offset Debts

Fri, 05 Sep 2008

Surging levels of student debt could lead to degrees becoming worthless, a new report has warned.

According to research from the National Union of Students (NUS), some students now face huge debts of as much as £37,000 when they graduate .

The NUS report also revealed that the expected lifetime earnings for students associated with courses such as arts and humanities will not be large enough to offset the interest payments on their loans .

The levels of debt some future graduates are facing have only "been associated with home ownership" in the past, according to the study .

The authors explained: "Like home ownership, we are expected to take it on willingly because it represents an investment ."

"Under a mortgage, however, it is a certainty that one will eventually own the home outright, provided one is able to keep up one's repayments . The parallel does not apply to an educational process."

Students enrolled on engineering, business and finance courses were found to be the most likely to reap the long-term benefits from attending university, as they’re lifetime income could amass to between £200,000 and £350,000 more than someone who left education after completing A-levels .
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