Students out of control of their finances

According to a recent survey conducted by YouGov for GE Money, 35 percent of students are overwhelmed and not in control of their finances, whilst a further 11 percent have no idea of their financial situation.

The survey on financial attitude and debt amongst students has revealed some worrying trends across the UK. The research reveals high levels of debt from loans and credit cards, with half of all students having debts of over £5,000, one in three owing over £10,000 and four percent owing in excess of £20,000.

Once in debt, the research reveals that 35 percent of students are not certain of the amount of interest they are paying. This is 14 percent higher than the percentage for adults interviewed in major cities across the UK.

Mike Pidgeon, communications officer for the Union, said “obviously we don’t have a magic wand, but we try to support students as much as possible… the survey doesn’t really say anything we don’t already know, students are financially distressed. The Student Advice Centre in Union North provides support for students, including those in financial trouble.”

The majority of students live off their student loans, with some support from jobs or families, but the survey shows only a quarter of students believe they will pay it off in full within five years of leaving university. In fact, 38 percent of students believe they will still have loans outstanding ten years after leaving full-time education.

Anouska Nithyanandan, a second year engineering student, commented “it’s difficult to be independent on the student loan. I have to rely on my family and I didn’t particularly want to do student loan. I have to rely on my family and I didn’t particularly want to do that. It doesn’t matter how careful you are, everyone struggles.”

A spokesman for [www.moneybasics.co.uk](http://www.moneybasics.co.uk), a financial advice website, emphasised the need for planning: “It is important to set budgets and stick to them. University should be a fun positive experience, however, all too often, it can turn out to be a financial minefield.”

Rhys Thomas, a second year history student, said “I am definitely worried about finances. It’s a bit overwhelming, but I hope that by getting a good degree it will be worth it in the end.”

However, the survey did reveal some financial responsibility amongst students, with only 12 percent of students claiming they would treat themselves if they received a £3,000 pound inheritance. The majority would save the money or use it to pay off debts.