Mounting costs put young people off university

LONDON, July 26 (Reuters) Mounting costs of further education are starting to deter prospective university applicants, a survey shows.

Almost one in four young adults think taking on debt to go to university is a waste, according to research by Engage Mutual Assurance.

Some 24 per cent of 18 to 24-year-olds consider taking on debt to go to university pointless and 26 per cent of parents aged 45-54 agree, the poll of 2,271 people shows.

Universities Secretary John Denham announced earlier this month that about 50,000 more students every year will benefit from full maintenance grants worth over 2,800 pounds to help them make ends meet while they study.

Graduates will be able to take a break from repaying their loans for up to five years to help them buy a house or start a family, he added.

However, the National Union of Students says that tuition fees and rising living costs mean students can leave university in up to 30,000 pounds of debt.

Against this backdrop, 82 per cent of young people surveyed by Engage Mutual say they recognise the importance of going without today to save for tomorrow, compared to 61 percent of grandparents.

A spokesman for Engage Mutual, said: ''The financial situation faced by today's young people is very different from that experienced by their grandparents.

''Whilst it is encouraging that many young adults recognise the need to save for their future, increasing costs of university and housing mean that young adults will have to think carefully about how much they save and how they invest.'' REUTERS LPB RAI0855