Student Finance Report: Students Struggling to Make Ends Meet Rises as Cost of University Increases

Student Finance Report: Students Struggling to Make Ends Meet Rises as Cost of 
University Increases 
- 18% of full time students surveyed do not have enough money to get
through the month and a further 48% are only just managing their
finances  
- Over half of students believe they will leave university with debt
of over GBP 10,000  
- Over half of students have taken on paid work, however, 29% of
those who worked during term time say it is having a negative impact
on their studies  
- 44% of students are concerned about the debt they are taking on  
- Students estimate their debt to be GBP 16,909 when leaving
university 
LONDON, ENGLAND -- (Marketwired) -- 10/03/13 -- A year on since
university tuition fees came into effect in September 2012, Lloyds
Bank's third annual Student Finance Report reveals that an increasing
number of students are continuing to struggle to make ends meet. 
Nearing one in five (18%) students surveyed say they do not have
enough money to meet monthly outgoings, compared to around one in six
(16%) last year. Nearly half of students (48%) admit they are only
just managing their finances but money is tight.  
With many of students' annual income derived from student loans, over
half (56%) think they will be in debt of over GBP 10,000 on
completion of their course, with the average estimated debt at GBP
16,909. This is a dramatic contrast with the GBP 27,796 estimate by
first year undergraduates - a clear sign that the rise in tuition
fees is having a significant impact on students. Is it of little
surprise, therefore, that over half of first year undergraduates
(55%), were worried about the levels of debt they were taking on due
to their present degree.  
Furthermore, 40% of first year undergraduates said that the cost of
increased tuition fees this year was a factor in their decision about
which university to study at, with 11% identifying it as a key
factor.  
With money tight, over half of all students have turned to paid work
to supplement their income. 51% of students surveyed have had a full
or part time job within the last academic year, compared to 48% the
previous year. Of these, nearly half (43%) said they found employment
to support themselves through university and help make ends meet,
this rises significantly amongst first year undergraduates to 52%. A
much smaller 16% cited experience in the job market and CV building
as their primary motivation, an increase from the previous year at
14%.  
Considerably fewer students (69%) worked during term time for less
than 15 hours per week. This compares to three quarters of students
last year (75%), yet average earnings have increased slightly to GBP
8.18 in comparison with GBP 7.89 in 2011 and GBP 8.12 in 2012.  
Seeking employment to supplement income is having an adverse effect
on an increasing larger proportion of students with 29% of those who
worked during term time admitting that it has affected their studies
in a negative way, compared with 25% in 2012. A strikingly smaller
proportion of (37%) of students who worked during term time found
that they had the right balance between study, work and being able to
socialise, compared to the previous two years (44% in 2011 and 43% in
2012).  
Philip Robinson, director of current accounts at Lloyds Bank, says:  
"Following the rise in tuition fees, our research shows that the
majority of students are expecting to leave university with a high
level of debt, with most expecting to see this extend well into five
figures.  
"Increasing debt has seen many students take on paid work, however,
despite their best efforts, students are still struggling to make
ends meet. Our goal at Lloyds Bank is that our student account helps
ease the financial burden of university. The account offers an
interest and fee-free planned overdraft of up to GBP 1,500, as well
as money management tools to make it easier for students to stay on
top of their finances and help them save money for the future."  
Notes to editors: 
All figures, unless otherwise stated, are from YouGov Plc. Total
sample size was 2000 adults in full time education at university
during the 2011/12 academic year. Fieldwork was undertaken between
19th July and 1st August 2012. The survey was carried out online.  
The Lloyds TSB student current account offers: 
- A tiered interest and fee-free Planned Overdraft of up to GBP 1,500
in the first three years and up to GBP 2,000 in years four to six
(subject to application and approval)  
- An NUS extra card for three years, giving students access to
exclusive discounts, offers and competitions from over 150 of their
favourite brands and retailers on the high street and online,
including Amazon, Spotify, Apple, McDonalds, Pizza Hut, Odeon, JJB
Sports, CrossCountry trains, National Express coach journeys, Virgin
Media, TopShop, ASOS, New Look, Warehouse, Alton Towers plus many
more 
- Exclusive GBP 75 discount off a holiday booking with STA Travel,
the world's leading travel agent for students and young people.  
We also offer all customers a variety of different tools to help them
stay on top of their finances and provide guidance on budgeting: 
- Mobile Banking with free text alerts, including limit alerts,
high/low balance alerts, overseas transaction alerts and weekly
balance alerts(i)  
- Money Manager - access to the online service which provides
customers with the ability to view and track their spending
patterns(ii)  
- Internet and telephone banking to help students manage their money
24 hours a day  
- Advice and guidance on budgeting and managing money on our Savvy
Student site. 
i Lloyds TSB does not charge for Mobile Banking but mobile operators
may charge for some services.    
ii Customers need to be registered for Lloyds TSB Internet Banking to
access Money Manager and Mobile Banking.  
Contacts:
Laura Ellman
0207 356 2200
laura.ellman@lloydsbanking.com