Graduates take on more debt than someone without a degree – comment

New research from Equifax reveals students who take out a student loan to fund a degree are nearly twice as likely to take on more debt after graduation as someone without a degree.

David Beard, Editor-in-Chief of Lendingexpert.co.uk, said; “It’s no surprise that graduates with student loans are more likely to take out other forms of credit after university than their peers who have chosen not to study for a degree. Making regular repayments on a student loan helps to build your credit history.

“If you’ve not been exposed to borrowing before, it’s harder to be accepted for new forms of credit because you won’t have a credit history. It can put young people off applying for things like credit cards because they won’t get offered the best deals, meaning borrowing for them can be very expensive. Most people won’t understand why they’re not being offered the best deals on credit cards, loans and mortgages because, shockingly, we’re still not giving our young people a decent financial education.

“The only way we’re going to close this gap is by teaching students in their teens all about their finances before they leave school. Learning how to manage your money responsibly is a fundamental skill, and it’s embarrassing that we still have generation after generation leaving our secondary schools having to figure it out for themselves – it’s simply not good enough.”