IVA & Debt Consolidation Advice

The financial problems faced by undergraduate students in the UK are part and parcel of higher education, and have been for decades. Now, according to a recent survey, it seems students are becoming increasingly nonchalant about their substantial levels of debt.

Students have always been strapped for cash, but the high levels of debt faced by undergraduates are a relatively new phenomenon. Student debt takes the form of bank overdrafts, credit cards, and now student loans. For many being in debt in amounts exceeding 5 figures are the increasingly the norm rather than the exception.

According to the latest survey of undergraduate life commissioned annually by Unite, a body that provides university accommodation in the UK, students owe an amount on average exceeding £ 5,000. This is expected to rise to around £ 10,000 by the time they finish their studies because of steep rises in tuition fees due in September.

More than 40% of students have part-time jobs to help them finance their studies, and are working 14 hours a week, although most said that improving their job prospects was an important factor in deciding to seek work

Although more than half of students who took part in the survey admitted difficulties in keeping on top of their bills and loan repayments, only 1 in 10 reported that they were “seriously worried” about their debts. This is less than in previous years, even though students owe more on average than ever before.

The good news from the survey is that students are unlikely to consider dropping out of university because of worries about debt. Indeed 90% of students said that the money borrowed was a worthwhile financial investment. The bad news, at least as far as this ex-student is concerned, is that students are socialising in the pub less – a 13% drop on last year!