Three in five students are expecting to be forced to confront over £10,000 worth of debt after finishing their studies, Lloyds TSB’s second annual Student Finance Report reveals.
The news follows the revelation that 16% of full-time students do not have enough money to make it through the month, with the financial struggle leaving nearly half (47%) of students concerned about debt.
The average annual income of a student is around £7,000, which is not enough to meet monthly expenses for 16% of students surveyed and barely enough for 40% of those surveyed, who admit that they scrape by on that amount.
The data shows that over three quarters (77%) of students believe they will graduate with some debt, while three in five (60%) predict they will be lumbered with £10,000 worth of debt after completing their course. Just 16% say they will leave with absolutely no debt whatsoever.
Of the 49% of students surveyed that undertook paid work within the last academic year, nearly half (43%) did so to boost their finances during term time to make ends meet – and get ahead of the debt.
The majority (75%) of jobs for students entailed working less than 15 hours a week on earnings of an average of £8 an hour. However, 25% of students who worked during term time were forced to sacrifice their studies in favour of earning some extra cash.
"For many, going to university is one of the biggest financial commitments they will have to face in their lifetime, and with the introduction of higher tuition fees from next month it is perhaps more important than ever for students to stay in control of their finances, stated Jatin Patel, director of current accounts at Lloyds TSB.
With debts stacking fast for current students and becoming a burden for recent graduates, it is crucial to start your search for good graduate jobs as early as possible – see the next article up for the low-down.