Students continue to struggle to survive financially at university

With an average annual income of approximately £7,000, 16 per cent of students surveyed say they do not have enough money to meet monthly outgoings, while 40 per cent admit they are only just managing their finances but money is tight. This compares to 17 per cent and 40 per cent respectively in 2011.

The data showed that nearly half of students’ annual income is derived from student loans. More than three quarters believe they will leave university with some debt, while 60 per cent expect that debt to be more than £10,000. Sixteen per cent believe they will leave with no debt at all.

Students in Scotland survive with the lowest levels of incomes – 10 per cent lower than the UK average income per student. But, this is offset by lower levels of debt with just 39 per cent of those surveyed expecting to owe more than £10,000 on completion of their course.

By contrast, annual income for students studying in London is 11 per cent higher than the national average.

With money tight, nearly half of all students have turned to paid work to supplement their income. Nearly 50 per cent of students surveyed have had a full or part-time job within the last academic year, compared to 51 per cent the previous year.

Three quarters of students who worked during term time did so for less than 15 hours per week earning just over £8 an hour on average, with 25 per cent of those who worked during term time admitting that it has affected their studies in a negative way.

Jatin Patel, director of current accounts at Lloyds TSB, said: “For many, going to university is one of the biggest financial commitments they will have to face in their lifetime, and with the introduction of higher tuition fees from next month it is perhaps more important than ever for students to stay in control of their finances.

“Our research shows that the majority of students already expect to leave university with some sort of debt, and most expect to see the amount they will owe extend into five figures.” The report surveyed 2,000 students in the last academic year across the UK.