Grads are putting pay first
Student debt is forcing graduates to choose jobs on the basis of pay rather than preference, research has suggested.
The Association of Investment Companies (AIC) has found that 40% of students expect to put their dream careers on hold in order to find less enjoyable, better paying jobs to pay off their debt.
The level of debt is also discouraging many to pursue postgraduate education. One in ten students are scrapping plans to continue to study after their degree, and a further 15% are putting postgraduate plans on hold until they can afford them, according to the AIC.
Those choosing to continue their studies after university are expecting to accrue an extra £4,402 of debt.
The findings come soon after statistics from the Training and Development Agency for Schools revealed that nearly half of recent science and maths graduates are unhappy in their job, as they cannot use the knowledge gained at university.
The AIC also found that 78% of parents believe the credit crunch will make it harder to support their child financially through university, with more than 80% willing to make sacrifices to support their child at university.
Worryingly, nearly a quarter (23%) of students expect to still be paying back their debt more than 15 years after they graduate. And almost half fear they will be left with this debt for at least a decade. Only 9% of students will leave university without debt.
Annabel Brodie-Smith, from the AIC, said:
“The credit crunch and the rising cost of living will undoubtedly make it harder for parents to fund their children’s university years.
“Whilst there are many benefits that come with a university education, on graduation many young people find themselves struggling to repay their debt.”
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