Students staying at home to escape debt

Students worried about facing debt management problems at university are choosing to remain living with their parents, new research has shown.

According to Lloyds TSB, a third of students claim they could not afford to study at university without the option of staying at their parents’ house.

A quarter of those questioned said they work around lectures to earn extra cash, while two-thirds believe future rises in the cost of living would make university difficult to afford.

The figures indicate future graduates may be far from debt free and may require debt help.

However, the bank’s director of current accounts Catherine McGrath said: “By making the time now for some financial planning and careful budgeting, cash-strapped students should be able to enjoy further education without worrying unduly about making ends meet.”

The study also suggested students are open to accepting debt advice with a quarter (26 per cent) saying they are concerned about financial matters and would like guidance.

The bank said 130,000 students will decide to stay at home this academic year.