Students still bank on the 'rentals'

17 January 2007
Students are increasingly reliant on parents to fund them through university as 75 per cent of them find themselves in debt, a new study from Unite has found.

'Less well-off' students emerged, worryingly, as less likely to take out a government loan and more likely to turn to alternative, commercial providers who can charge much higher rates of interest.

Unite chief executive Mark Allan told the Guardian that the study shows the "need for easier access to personal financial management advice across the board" to enable all students to make informed decisions about managing their debt.

Overall, 93 per cent of students continue to rely financially on their parents to some extent, receiving an average £4,000 per year.

Meanwhile, a more positive outlook emerged from a survey of the UK Top 100 Graduate Employers which found that the average graduate starting salary is now £25,500, £1,700 more than the average this time last year.

These salaries will help some students repay their debts with ease – but they are likely to be in a minority.

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