The debt incurred in their student years may not impede their finances in later years, Credit Action’s spokesperson Chris Tapp said, but it does embed a “culture of debt” which students can find hard to shake off.

Financial experts stress that debt per se is not necessarily a problem and well-managed borrowing teaches individuals good financial management.

But, as “government-endorsed debt on a massive scale”, taking out a student loan is “feeding into debt culture”, Chris Tapp warned.

What is more, a “rising percentage” of graduates may be falling into insolvency after finding their accumulating debt impossible to manage, he stressed.

A damaged credit rating can affect graduates’ ability to obtain a mortgage or loan for the next six years, as well as limiting their employment options, with a history of insolvency barring candidates from professions such as law or accountancy, he noted.

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