A quarter of students now expect their university debts to take as long as 20 years to clear.

Some 38 per cent expect to have cleared student loans ten years after graduation.

One in 25 think they will never clear their debts.

A poll of students by Endsleigh Insurance finds 56 per cent of students expected to graduate with £15,000 of debt, with a third predicting borrowing over £20,000.

NUS president Wes Streeting said the high levels of student debt showed an overhaul of university funding is needed.

"We are in danger of condemning an entire generation to a lifetime of debt.

"With graduate debt at an all time high, and employment opportunities at an all-time low, we find it astonishing that universities continue to demand ever higher fees," he said.

"More than half of vice chancellors surveyed by the BBC this year said they wanted to charge students even higher fees of at least £5,000 a year."

He added: "The forthcoming review of university funding must look at alternatives to the disastrous current system of top up fees."

However, there is evidence to suggest university is worth the investment.

Universities
UK found the average lifetime earnings of a graduate was £160,000 more than those of a non-graduate with two A-levels.

James Crocker at Endsleigh said: "The results of the survey point to the increasing financial strain that today’s student is under.

"In the short term students need to manage their finances as carefully as possible by creating a budget and sticking to it so as not to get into even more debt."

He offered the following advice for new students:

  • Avoid high-interest, inflexible debt such as credit cards as this can spiral into large interest payments and fees even over a short period of time

  • Draw up a realistic weekly budget that includes food, rent, bills and entertainment and try hard to stick to it

    Protect your credit rating by ensuring that you pay your bills on time, this will save money on late payment fees now and also avoid building up a bad credit rating for the future

    Talk to the university or students union about part-time work as often it can be flexible and help provide a regular income.

    Source: My Finances.co.uk; Tues. 29th Sept. 2009