Student debt has risen by 17%

This is a dramatic increase compared with previous years, and with graduate salaries suffering an unexpected fall many former students might struggle to clear their debts.

The survey from Barclays bank also found that the number of graduates in debt was on the increase.

Although most students were borrowing cheaply through the Student Loans Company the level of relatively expensive credit card debt among graduates was also rising steadily.

Debt mountain

Graduate debt across England and Wales increased on average by 17% during 2002 and is expected to rise by a further 13% this year to more than �12,500 per head.

The 2002 rise is not as dramatic as in 2001 when, according to Barclays, graduate debt increased by 44%.

But it adds support to the argument that today's students are building up a debt mountain that they will struggle to clear.

Graduate debt burden Midlands �12,079 South West �11,795 London �11,380 North East �11,029 South East �10,697 North West �10,644 Source: Barclays

The survey found that on average, six months after their final exams, graduates are earning just �14,000 a year - a fall of �1,000 compared with 2001. Barclays describes the graduate jobs market as "extremely tough".

The total number of graduates in debt has also increased to the point where only one in eight students leaves university owing nothing.

The survey found that 81% of graduate debt was owed to the Student Loans Company.

Students are relying increasingly upon often expensive credit card debt, with the average graduate in 2002 leaving university owing �903 on credit cards, compared with �760 in 2001.

Mandy Telford, president of the National Union of Students, said: "Students are being forced to find more and more money just to keep their heads above water while at university.

"With every increase in graduate debt more and more people from the most debt-averse sections of society are put off going to university.