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A new study has revealed how many students are expecting to graduate with high levels of debt.

Conducted by the Association of Investment Companies (AIC), the survey found 24 per cent of students anticipate at least £20,000 of debt when they finish their studies.

Furthermore, almost three-quarters (74 per cent) of parents believe the recession is making it more difficult for them to see their children through higher education.

"Many young people go to university to enjoy the best years of their life but on graduation find themselves struggling to repay their debts for years," commented Annabel Brodie-Smith, communications director at the AIC.

She added that saving for a child’s university education is one means of reducing the financial strain early on, emphasising that the earlier they start saving, the better.

A recent study by uSwitch.com found that students could be making their debt management problems worse by failing to choose the right current account.

It advised that unauthorised overdraft rates can be charged at a rate as high as 29.99 per cent.

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