Graduates are underestimating how much debt they will have built up on graduation, a new report has warned.
The Association of Investment Companies (AIC) found that students typically believe that they will finish university with £12,203 of debt.
However, the organisation said that those people who had started their courses after the introduction of top-up fees were more likely to end up with £20,000 of debt.
Worryingly, the research showed that debt was influencing the career choices of graduates, with 40 per cent saying they will look for a well-paid job, rather than their dream career, to help pay the money back.
Similarly, 15 per cent of students revealed they have decided to put their postgraduate studies on hold because they do not think they can afford them.
"It's alarming that few of tomorrow's graduates or their families really comprehend the financial implications of top up fees and both have underestimated the amount of student debt they will face on graduation," commented Annabel Brodie-Smith, the communications director at the AIC.
"Whilst there are many benefits that come with a university education, on graduation many young people find themselves struggling to repay their debt."
