The looming threat of leaving university with a huge student debt is starting to hit home, as a third of potential students have said they will live at home while they study because it’s cheaper, according to a survey by Lloyds Student Banking.
Lloyds asked 1,000 young people who intend to go to university this year, of which 31% said they would not be able to afford a university education if they did not remain living at home while they complete their degree.
A further 79% said they will stay with Mum and Dad to save money, and twenty-seven per cent will stay put in order to keep their student debt under control. Forty-one per cent of young people, given the choice, would still opt to remain in the family home because it’s ‘an easy life’, the research found.
The third who intend to stay at home represent a sharp rise from last year, when just a fifth opted out of student accommodation in favour of living at home. More than a quarter said that getting a part-time job will be essential, and a similar number are concerned about managing their finances whilst at university.
However financially conscientious some are, there are still 63% that place the university experience above the potential cost of living away from home, and that the independence they hope to gain will be worth the financial burden. The primary reasons for this are the distance from home to the university of their choice, the social aspect and escaping parental confines.
Caroline Brady, from Lloyds TSB student banking said: “Students face higher levels of debt than ever before. 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.”
Alvin Hall, independent financial expert said: “Many students have the ability to shut down or seal off that part of their brains that know they must handle their money rationally and responsibly. The result can be stress that takes your mind off your studies, humbling request for cash from the bank of Mum and Dad, and, if credit is involved, huge interest charges and a ruined credit rating. This is not a good way to begin adult life after university.”
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