1 in 10 students are likely to drop out due to financial pressures

Research released on December 3 2014, indicated that nearly half a million students in the United Kingdom are worried about the financial cost of continuing their studies.

The research, carried out by financial education company Blackbullion, showed that one in ten students are likely to drop out due to financial pressure.

November marked the halfway point between the distribution of student loan instalments and the results of the survey.

The latest forecast for the average amount of student debt upon graduation from university is around GPB 44,015.

59% of those surveyed were aware that current spending habits impact their future finances, but 30% believed they could, “worry about it later” and a similar number say they live for the present moment.

Vivi Friedgut, the founder of Blackbullion is calling on students to take control of their finances to avoid spiralling debt, as further figures from the company’s research show that most students will be unable to pay off their loans after 30 years.

“It is worrying that students feel they have to resort to dropping out of university as a financial solution. Students should not live in fear of their financial future, but instead be better educated about financial management,” she said.

Ms Friedgut encouraged, “universities and students to actively seek out ways to boost financial knowledge.”

Blackbullion is currently offering online and on-site services for education institutions, in order to help them empower university students to take charge of their finances.

Some of the advice that Blackbullion recommends when it comes to managing students’ money include re-assessing credit card payments, using left over foods in cupboards and freezers that can be converted into a meal, switching to cash instead of card payments and looking into part-time work.

In addition, Blackbullion advises for students to use financial support available on campus as they will be useful for providing tips to light possible financial burdens.