Student debt to blame for 50% of drop-outs
Student loans, credit card bills, and overdrafts are responsible for half of university drop outs
Thursday, 14, Sep 2006 10:59
High debts are responsible for 50 per cent of the people who drop out of university.
New figures from student-debt.org.uk, which provides financial advice for students and graduates, show debts are having a real impact on the lives of students.
And while the average graduate can now expect to owe £15,000 by the time they receive their degree, half the people that do not make it that far blame their borrowing.
And the £15,000 debt exists despite the best efforts of students and their families.
Close to half (45 per cent) of undergraduates work more than 16 hours a week during term time, with more than four in five (81 per cent) working over the summer holiday to lessen their debts.
Additionally, some 58 per cent of students receive £5,000 from their parents to help them during their time at university.
But despite all this, not to mention student loans, more than three students in five (62 per cent) struggle financially during their time at university, figures from student-debt.org.uk show.
"The financial pressures associated with a course of higher education should not be underestimated," a spokesman from student-debt.org.uk said.
"These results show that university is as much about hard work outside the classroom as within it.
"The majority of students do budget, but if they are to emerge from university financially stable, it is increasingly vital that they are well educated about how to manage their money."
Some 58 per cent of students draw up budgets to help them manage their money.
Female students are better at this than male ones, with 61 per cent budgeting compared with 55 per cent of men.
But the problems of debt do not stop when degrees are conferred.
Some 34 per cent of recent graduates think they have a debt problem and 58 per cent say they are earning less than expected in their new jobs.