Majority of West Midlands students struggling with debt
MORE than half of students in the West Midlands are struggling to make ends meet, new research suggests.
Lloyds TSB said that with an average annual budget of under £6,000, 58% of students in the region were in financial difficulties.
The Lloyds TSB Student Finance Report concludes one nearly one in six students (17%) do not have enough money to meet monthly outgoings.
To alleviate their plight, 38% of students in the region have taken on paid work during the last financial year.
The report indicates that on average students nationally have an annual income of under £6,000 a year – half of which is derived from student loans.
A separate study shows that 41% of students in the West Midlands are just meeting monthly outgoings and a further one in six do not have enough to cover all their essential spending each month.
With money remaining tight, the majority of students in the region (54%) say that last year they sacrificed going out or spending on non essential items to help make ends meet. Nearly a third (30%) say they raided their savings to help get by, with a third (32%) admitting to approaching friends or family for financial help to get through the month.
At the same time, nearly half of West Midlands students are turning to paid work to supplement their income. Of the 38% to have had a job within the last academic year, just under half (42%) said they were working mainly to support themselves through university and help make ends meet.
Paid work accounts for almost a quarter of students’ income nationally, with the average West Midland student earning just over £7 an hour. Over a third (34%) of students in the region believe they will be working more in the coming year.
Tight budgets are driving students towards work, however the worry of taking on large amounts of debt also play on students’ minds. Just over half (57%) of all respondents in the region are concerned about the levels of debt they are taking on while at university, and a small number (10%) chose to have a job to try and avoid taking on unnecessary debt.
Barry Hollis, manager at Lloyds TSB High Street, Coventry, said: “Going to university is meant to be a once in a lifetime experience, but students today not only have the worry of taking on a large debt burden, but the rising cost of living means many are also struggling to make ends meet whilst they are still studying.
“Paid work can be a huge benefit to students as it can give them valuable experience for later on in life; however, it should not be impacting their studies. With finances so tight students need to ensure they are making use of all the discounts and money management tools available to them to help them manage their finances.”
