The revelations from the Student Loans Company come just as it was revealed that British taxpayers are to now be expected to pay for free education for Scottish students, but not for those elsewhere in the UK.

However, the prospect of vast amounts ofdebt has not deterred students from applying to universities. By March this year, a record 446,765 potential students had applied.

The average student beginning a course this autumn will leave with a debt of around 30,000, which most will still be paying off well into their mid-30s.

The National Union of Students claims that such liability dissuades some poorer people from applying.

Scottish students, and those from the European Union outside the UK, will eventually pay nothing for education north of the border as the Scottish Executive plans to scrap its 2,000 graduate tax.

Anyone in England, Wales or Northern Ireland will still have to pay 3,000 a year to study in England with Scottish students paying just 1,700 a year.

By 2009, Scottish students will not be charged to graduate at all and from 2011, loans are expected to end as grants are to be reintroduced.

The news comes as the Office for Fair Access says the system of student bursaries needs to be overhauled.

The bursaries are supposed to help disadvantaged youngsters go to university, but campaigners argue that bursaries are not working and the money could be better spent on outreach and summer schools.

The system, designed with poorer students in mind, was part of the Government's get out of jail card when it introduced 3,000 tuition fees for universities.

They were part of a package of measures offered by Tony Blair to buy off more than 100 rebel MPs.

The introduction of annual tuition fees pushed the total owed by current and former students in England and Wales to the Student Loans Company to 19 billion. This does not include otherdebts run up with banks, parents and elsewhere.

Students graduating last summer were saddled with an average total debt of just over 13,250 per head, according to a student money survey while the National Union of Students estimates that those graduating in 2009 will owe an average of around 30,000.

So how can students manage these impossible debts? Once graduated, it is a good idea to start work as soon as possible. Dont wait for the job you want or are degree qualified for, instead take a job as soon as you can to avoid running up further debt to pay for your necessities such as rent and food.

Although the average graduate starting salary in 2006 was 13,860 a year, it is probably the first time that you will have had a decent regular income, but at the same time you may have had to move to a new area for your new job and have additional travel and living costs.

By working out how much money is coming in and how much is going out, you'll know how much is left over to put towards repaying your debts, no matter how little the amount may seem, it is worth starting to pay those debts as soon as possible. Do not enter into any otherdebt or loans until you have whittled your existing debts down into manageable payments.