Banks 'should not lend excessively to students'
UK banks have a responsibility not to lend excessive amounts of money to students who will find it difficult to make repayments, amid concerns that excessive lending contributes to debt problems ahead.
HSBC puts forward this view on the basis that students need financial support, with large amounts of lending paving the way for unaffordable repayments ahead.
Spokesperson James Thorpe highlights the various causes of student debt, highlighting the debt risks that will be faced by many young people after graduating from university.
"One of the things which students need to factor in now is borrowing huge sums for other areas," he explains.
"They are likely to be leaving university with at least £10,000 worth of debt, which is largely down to student fees."
Recent research from the Royal Bank of Scotland shows that fewer undergraduates are doing part-time work during studies, with the average number having fallen for the first time since the survey was launched.
Source: londonstockexchange.co.uk
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