'Young overestimate student debts'
Updated on 13 August 2008
Young people worried about getting into student debt do not know enough about the grants available and overestimate how much they will have to pay back, according to new research.
Some 71% of young people surveyed were worried about getting into debt, a YouGov poll for the University of Greenwich found, and 58% were worried about the rising cost of living.
But 88% did not know they were entitled to a maintenance grant if their family income fell below £60,000.
Students from households with incomes up to £25,000 qualify for a maximum grant of £2,800. And those from a households with an income up to £60,005 are entitled to at least a partial grant, to help cover the costs of living and accommodation. The grants do not have to be repaid.
The independent research found students overestimated how much they would have to repay each month in student loans.
Young people expected a graduate earning the average starting salary of £19,000 a year would have to repay £150 a month. The true figure is under £30 a month, or less than a pound a day.
Some 22% also mistakenly believed tuition fees, a significant factor in choosing a university, needed to be paid up front at the beginning of each year. Fees can be paid back through student loans once a student graduates, starts working and can afford it.
A quarter of the 441 16- to 18-year-olds polled for the survey said they would be more likely to study at a university that offers tuition fees lower than the permitted maximum of £3,145.
Dr Margaret Noble, Pro Vice-Chancellor of the University of Greenwich, said: "This is the third year that we have carried out this research with YouGov.
"The findings have remained remarkably consistent, showing that young people thinking about going to university have many misunderstandings about debt and tuition fees. Higher education is a great investment in your future, which leads to better jobs and higher pay."
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