Student debt has risen by more than a quarter

Student debt has risen by more than a quarter

University students owed an average of £4,203 at the start of the 2001-2002 academic year – a 26 per cent rise on the year before. A substantial part of the debt is accounted for by government loans, which have replaced grants. Three-fifths of students have them, owing on average £5,188. One student in ten owes money on his or her credit-card account. More than four in ten students work up to 29 hours a week to help to make ends meet. Overall,almost three-quarters of students have done some form of work while at university, compared with little more than half last year. Many students receive financial help from their families, and a fifth live at home with parents or other relatives. These tend to be younger, from a lower social class and studying for a vocational qualification at one of the new universities.

These are among the findings of the second annual "Student Living Survey",commissioned by Unite, the accommodation-services company, for which Mori interviewed 1,068 full-time undergraduate and postgraduate students. Respondents said one of the best things about student life was the chance to improve their career prospects. Meeting new friends was a close second, and students enjoyed having the freedom to do what they wanted. The vast majority thought university was worthwhile. The worst aspects involved finance, debt, and balancing academic and work commitments. One in four students said they were struggling with some bills and credit commitments. Even so, the average student spent a fifth of his or her income, £20 a week, on alcohol, more than two-thirds of students had a laptop, more than a third had a DVD player or video and 86 per cent owned a mobile phone. "Undergraduates who are aiming for a first-class degree spend significantly less on alcohol than those who predict they will get a third-class degree," said the report.