Students struggle to make it through the month on meagre incomes
Some 16% of full-time students lack sufficient funds to make it through the month, while two in five (40%) are only just managing to make their finances stretch.
The average yearly student income hits around the £7,000 mark, which is not enough to cover monthly outgoings for 16% of students surveyed in Lloyds TSB’s second annual Student Finance Report.
Some 40% of those surveyed manage to scrape by – but 47% admit that their financial situation is leaving them concerned about debt.
A staggering three in five students surveyed are expecting to confront over £10,000 of debt once they have completed their course.
The findings reveal that over three quarters (77%) of students believe they will graduate with some debt, while 60% predict they will be forced to face debt in excess of £10,000. Just 16% say they will leave university with no debt whatsoever.
Shouldering the money worries that threaten their future has seen 43% of the 49% of students that undertook paid work last academic year, doing so in order to make ends meet – and to get a head start on the mountain of debt.
The majority (75%) of student jobs involved working less than 15 hours a week for average earnings of £8 an hour. However, a quarter of students who worked during term-time were forced to sacrifice their studies in favour of earning some extra cash. The news comes just prior to the new university tuition fees enforcement next month.
Jatin Patel, director of current accounts at Lloyds TSB, said: "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.
"With finances tight, many students turn to paid work to help cover their monthly outgoings. However, it is clear that even with extra income from employment, a lot of students are still struggling to make ends meet.”
In order to prevent overspending and make their budget easier to manage, students or parents may wish to consider a pre-paid credit card.