Parents and prospective university students are considerably underestimating the level of student debt they will incur, new research has found.

The Association of Investment Trust Companies (AITC) found that the average parent expects their child to graduate with a debt of £7,080, some way below the current average of £13,500.

Moreover, despite the high-profile introduction of top-up fees, students are also underestimating their future debt. The average student starting university this year expects to graduate with a debt of £6,199 - £1,000 less than the figure cited by last year's respondents.

"It's alarming that so few of tomorrow’s graduates or their families really comprehend the financial implications of going to university," said the AITC's Annabel Brodie-Smith.

She added: "This year parents and future students have underestimated by a greater margin the amount of student debt they will face on graduation despite the publicity surrounding the introduction of top-up fees from September."

Ms Brodie-Smith urged parents to begin saving for education costs while their children were still young.

However, the research also suggested that many families expect students to go it alone financially, with just one in five would-be graduates expecting their parents to fund them through university.

Rather, three in ten will take out a loan, while nearly a quarter plan to undertake paid part-time work.