Cash strapped students stay with parents

Gone are the days when university was a time to strike out on your own, with rising costs now meaning almost one student in three lives with their parents to save cash.

That is according to new research from Lloyds TSB student banking, showing 31 per cent of students say if they did not live at home they would not be able to afford to go to university. This is compared with 22 per cent last year.

"Students face higher levels of debt than ever before and whilst it’s essential that they find ways to keep costs to a minimum it is also important that students think carefully about all the options," said Caroline Brady, of Lloyds TSB student banking.

"Savvy budgeting skills can really help students to start off on the right foot while they get to grips with managing their own money. A smart approach is to plan ahead and seek guidance now on how to manage your finances to avoid getting into trouble later on."

Of the students planning to live away from home, more than one in four (26 per cent) said they are concerned about managing their money while studying, 28 per cent are worried about lasting the full term, and one in five admits they have never set a budget and would like some more help.

But most (63 per cent) think the independence they gain by living away from home is worth the price.

Seven students in ten plan to get a job during term time to help fund their time there, most have already applied for the government's student finance package, another 40 per cent have applied for a maintenance loan to help with living costs and 20 per cent have asked for a bursary from their university.