Students will accrue huge debts, a study suggests

This figure is four times the amount of debt accumulated by today's graduates.

If 70% of 18 to 21-year-olds were in higher education in 2023, graduate debt would near �90m, a study for Liverpool Victoria Friendly Society suggests.

The National Union of Students (NUS) fears debt could exceed this if the cap on top-up fees is lifted.

The study predicts that graduates' average starting salaries in 18 years' time will top �52,000.

There is a big push by some universities to get the cap on top-up fees lifted and this would have a massive effect... probably doubling or tripling the debt Hannah Essex, National Union of Students

This compares to average starting salaries of �21,985 today.

The Futurology Report, conducted for Liverpool Victoria by kae:marketing intelligence, shows that education is one of three key concerns for today's Child Trust Fund generation when they reach adulthood.

The other two key concerns are healthcare and housing.

Managing debt

NUS education vice-president Hannah Essex said: "This report is no surprise. We know graduate debt is rising at a rapid rate.

"But the projected figures do not take into account that there is a big push by some universities to get the cap on top-up fees lifted and this would have a massive effect on these figures - probably doubling or tripling the debt."

Liverpool Victoria's head of external affairs, Nigel Snell, said: "Although everyone knows life gets more expensive between birth and adulthood, the substantial increases in certain costs that we are predicting will have a dramatic effect on the future choices of today's babies."

Ms Essex added: "I don't want people to be put off by these figures.

"University is a worthwhile experience, but debt is a daunting prospect, but there are ways of managing it."

Applications up

University applications have risen 9% this year as students try to secure places before the introduction of annual tuition fees of up to �3,000 from September 2006.

More than 31,000 extra students have applied for courses this year, according to the Universities and Colleges Admissions Service (Ucas).

The Futurology Report also suggested that in 2023, the price of a pint of beer would be �7.56 (�2.65 today) and an adult cinema ticket �16.56 (�5.80).

From 2006, university tuition fees in England can range up to �3,000 a year - though graduates will not have to pay them until they are earning at least �15,000.