Student debts are rising to record levels and nearly nine out of 10 undergraduates in the UK have loans, a survey has said.

A poll by Barclays bank suggests that the average student debt in 2001 is �5,961.

That is an increase of �1,600 from 2000, when the average was �4,339.

The survey - which is in its 10th year - reflects the growing reliance on credit following the abolition of student grants and the introduction of the loans system.

Student Debt in the UK in 2001

Average debt - �5,961 London - �4,860 South East and East Anglia - �6,229 South West - �6,203 Midlands - �5,964 North West - �5,908 North East and Yorkshire - �6,158 Wales - �6,025 Scotland - �4,245 Northern Ireland - �5,654

In 1992, just 31% of students had loans, now 88% do.

Just 5% of students have no debts.

Barclays says four in 10 students do paid work for an average of 15 hours a week to fund their studies.

Eight out of 10 got jobs in the holidays and earned an average of �1,426.

The figures for debt vary from region to region.

Debt levels in London and Scotland were below average, while the south west and south east of England and East Anglia were above average.

Sian Evans of Barclays said most students questioned estimated that they would have debts of �12,000 by the time they graduated.

"This is more than double the 2001 actual average graduate debt of �6,507 and more than the predicted �10,000 debt for next year," she said.

The bank said about half of students had savings of just under �2,000 when they started their degrees.

We are concerned if students are falling into hardship Diana Warwick, Universities UK

University chiefs are concerned that more students have turned to hardship funds.

The number seeking emergency help from the funds increased from 5% to 9%.

Student leaders are worried about the increasing level of debt.

The president of the National Union of Students, Owain James, said: "NUS is concerned that the Barclays survey shows that the level of student debt continues to accelerate.

"The student financial support system has changed beyond recognition, resulting in a student debt increase of over 550 per cent in under 10 years."

The union says students from poorer families are put off higher education because of debt fears.

Pay off

The chief executive of Universities UK Diana Warwick said evidence suggested that studying for degrees paid off, with graduates being able to pay off their loans with their higher earnings.

But she said: "We are concerned if students are falling into hardship.

"Universities UK is conducting its own research to discover whether the current student support arrangements are deterring some groups from entering higher education."

About 1300 students were questioned for the survey.