Those who think students are frivolous with money may not be surprised to hear up to a quarter of students spend their maintenance loan allotment within a month
This result, found by the National Union of Students (NUS), came on the heels of news that the average student faces a deficit of £221 per month, and has fueled concerns about whether the maintenance loan is enough to live on.
The NUS study gathered data from 2,064 students between April and May 2017. The report also found a further 40 percent of students are concerned about money management.
SU Welfare, Community, and Diversity Officer India Edwards said there was a “looming student hardship crisis” owing to the rising cost of university. She added: “All the media attention is on fees but it’s day to day cost of living where students are feeling the pinch.”
Jake Butler, a writer for money-saving website Save the Student, shared Ms. Edwards’ viewpoint. In a blogpost, Mr Butler claimed maintenance loan shortfall is “the most pressing issue with student loans, not the latest increases in fees and interest rates”.
Additional statistics from the National Student Money Survey state 84 percent of students struggled with economic hardship last year, while approximately half of those surveyed claimed their financial problems caused mental health issues.
The loan system expects parents to contribute thousands towards their childrenís education. Parents earning £35,000 are assumed to pay £1,211 annually to cover the shortfall, yet almost one in three students say that their parents do not offer enough financial support to do so.
Students are advised to note that loans are paid in instalments and to budget accordingly, as well as researching grants they may be eligible for, and setting up a good student account with an interest-free overdraft.