Thousands of students may go bankrupt after accumulating huge debts at university, according to a study today.

An estimated one in 10 could be declared insolvent after borrowing thousands to pay for tuition fees and accommodation, it is claimed.


One in 10 students could be declared insolvent after borrowing thousands to pay for tuition fees

The study also warned that students are facing an 11-year "debt sentence" due to the increased cost of going to university in Britain.

The majority of undergraduates are preparing to get paid work to keep debt levels down, even if it means missing out on lectures.

The findings will fuel concerns over the long-term financial difficulties faced by students due to the Government's higher education funding regime imposed last year. For the first time, universities were able to charge £3,000-a-year in tuition fees, compared with £1,250 a year earlier.

The near tripling of fees, coupled with spiralling rents and increased living costs, means thousands of students will have to borrow record amounts, take paid work or rely on parents to cover the cost of a three-year course.

As 200,000 sixth-formers prepare to start university this year, uSwitch.com, the price comparison website, said students face total debts of £3.2 billion, almost three times that of 1997.

Over the past decade, graduate salaries have increased by 51 per cent but student debt has increased by 167 per cent, forcing almost one in 10 to consider bankruptcy as a solution, says the study.

Mike Naylor, the website's personal finance specialist, said: "More money than ever is being borrowed by students to fund their way through university, with some starting work with debts of up to £30,000. It is inevitable that this will have a knock-on effect on their lives."

A separate survey of 2,000 students by Push.co.uk, the university guide, found that undergraduates who started last year can expect to owe nearly £17,500 by the time they leave.

Debts for students in England have risen by a quarter in the past 12 months and this year's freshers will owe up to £21,500 by graduation, says the study.

The National Union of Students warned that middle-class students, who are ineligible for new means-tested grants and bursaries, are so heavily in debt that they are putting off buying a home or starting a family.

A third survey of more than 3,000 graduates, undergraduates and sixth-formers by NatWest found that 82 per cent of students preparing to start courses in September will look for paid work while studying.

The Department of Innovation, Universities and Skills insisted debt levels were not deterring people from higher education, with numbers expected to be up on 2006.

"A generous package of support is available to students, particularly those from low-income families, who can receive maintenance grants of up to £2,700 per annum," said a spokesman.

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