UNITE's annual report has revealed that not only has student debt risen 9% but that many students need advice in making the right finanicial choices. The survery interviewed 1,600 students from 20 universities around the country.
While the average student spends £10,000 a year excluding fees, 93% are supported by their parents who typically contribute £4,000 a year to the cost of studying. The number of students in debt has also risen 8% to 75%.
More concerning is that UNITE report students from "lower socio-economic backgrounds... [are] ...more likely to look to borrow money from elsewhere, thereby increasing their overall level of debt", forgoing a government student loan that charges interest at the (recently raised) rate of inflation, for the likes of credit cards.
The National Union of Students welfare Vice-President, Veronica King, commented that she was pleased 94% of students thought university was a good investment and that NUS is "deeply concerned by the reported rise in levels of student debt", but "university offers good value for money" .
In what looks like an attempt to curb rampant student debt, the government introduced a new busary scheme for students paying in excess of £2,700 for tution fees or falling in to two grant categories. The bursary offers between £300 and £3,000 with the average lying at around £1,000, from the University or College in attendence.