Speak to one of our specialist advisors 0808 156 7730

Student debt facts and helping you with some money saving tips

12 December 2017 - Posted by TalkAboutDebt

Student life is synonymous with building up debt while scraping by on baked beans and wearing extra jumpers to save on the heating bill.

But, according to recent research, that doesn’t mean youngsters at university are necessarily bad with money.

Figures from life insurance provider SunLife show that  – even though about 500,000 of the young people starting university this year will leave owing a massive £44,000 – students are actually 60% more likely to budget than the over 65s.

Savvier students…

The SunLife study found that almost six in ten 18-24 year olds stick to a budget, compared to just 39% of those aged 55-64 and 32% of those aged 65 and over.

Perhaps less surprisingly, those aged 24 and under also are four times as likely to use a phone app to keep an eye on their incomings and outgoings than any other age group.

SunLife managing director Dean Lamble said: “Younger people are budgeting more stringently than any other age group because the rising cost of attending university means they have to.”

“Living through seven years of recession has probably also had a huge effect on how they view money.”

But bigger debts

More than 470,000 young adults started university in the last few months.

And most of them will have debts of about £40,000 by the time they graduate.

Their parents and grandparents, on the other hand, would largely have received grants if they attended university.

Student loans weren’t brought in until 1989, and even then, poorer students still received grants of up to £2,2653 (equivalent to £6,500 today).

Lamble said: “While today’s 50 to 70 years olds are likely to be the first generation to be better off than both their parents and their children, today’s young people are leaving university saddled with tens of thousands of pounds of debt.”

Student budgeting tips

Worried about making ends meet at university? Here are some top money tips for students…

*Set yourself a budget for spending on non-essential items such as gadgets and nights out. To do this, add up all your income (student loan etc) then subtract what you have to spend on essentials such as food and bills. What’s left is the amount you can afford to splurge.

*Take advantage of free stuff. Students can avoid paying council tax and for medical prescriptions, for example.

*Use an NUS card to get discounts on everything from high street fashion to restaurant meals and cinema tickets.

*Get a 16-25 railcard that saves you a third on most train fares.

*Use budgeting technology such as SunLife’s calculator app or TSB’s Online Money Planner to help you keep track of your cash.

*Don’t go without home insurance. Student houses are often burgled, so it’s best to get a policy that will replace your valuables. Your parents’ cover may protect you while you are living in student halls (although this is worth checking as policies vary). But once you are living in a privately owned house or flat, your own policy is a sensible precaution.

This article was written by

Check to see if you qualify to get debt help

Quickly find out if you can write off your debt today

Please select the total sum of your debt

Less than £7,000
£7,000 - £20,000
More than £20,000

How many creditors do you have?

less than 2
2 or more

What type of property do you live in?

Owned
Rented
Private Rented
Living With Parents

Where do you live?

Scotland
England
Wales
Northern Ireland

Please enter your details

I agree to be contacted by phone, email or SMS. See our Privacy Policy for more information.

Uncover options you didn't know existed.

Live Chat

Got a question? Our advisers will point you in the right direction.

  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed
Launch chat

Call us

Got a question? Our advisers will point you in the right direction.

0808 156 7730
  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed