Graduate debts of £44,000 by 2023 says research
If you think you'll graduate with a huge debt, it's nothing compared to what students could face in 2023. New research suggests that graduates then will face debts of £43,825 – almost five times the current average of £9,210.
Pay will go up as well, but not by the same proportion. The average graduate salary in 18 years' time will be £52,910, but that's not much more than double today's average of £21,985.
The proportion of debt to salary is 42% of a graduate's starting wages today, but in 2023 the researchers say it will have soared to 83%.
Research by the Liverpool Victoria friendly society also predicts that young people will leave home much later than they do at present. With the average property for a first-time buyer costing £430,000 in 2023, they simply won't be able to afford to move out.
Even more worryingly, the research suggests that a pint of beer will cost £7.56 in 2023. That's even more expensive than in posh French restaurants.
The message for today's students is therefore twofold: first of all, think yourselves lucky; and secondly, if you have children in the future don't expect to get rid of them for a long time.
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