Young forced to choose between house and degree

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Young forced to choose between house and degree

David Rendel, Liberal Democrat higher education spokesman, today challenged the prime minister about the plight of graduates unable to get a mortgage because of their student debts.

Mr Rendel said: "Students graduating with five-figure debts are finding it impossible to get onto the housing ladder. This situation will be made far worse if top-up fees are introduced and graduate debts reach as high as £30,000."

He pointed out that until recently new graduates were the main source of first time buyers, but debt now prevents many from entering the housing market.

He raised the case of a constituent who was told that her student loan debt of £12,000 limits the amount she can borrow, making it impossible for her to get a mortgage.

The government's higher education minister has previously admitted that students from the poorest backgrounds will graduate with debts of nearly £20,000. Barclay's Bank estimates that that graduate debt will top £30,000 by 2010.

"The Prime Minister clearly doesn't understand one of the likely side effects of his own student top-up fees policy. Under Labour young people are forced to choose between going into higher education or buying a property," Mr Rendel alleged.

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