Debt a necessity for students, research shows

Students are being left with little choice but to borrow from the government and creditors in order to finance their way through university, a new study has revealed.

Findings from Halifax have shown that, while student loans are the most common type of borrowing – taken out by 84 per cent of those in higher education – 67 per cent had an overdraft and 36 per cent used a credit card.

Current account director for Halifax Mike Regnier remarked that it is unfortunate that such a trend is “necessary to fund university”, but cautious debt management and financial planning could help curtail the level of student debt.

“Making sure you keep the cost of any debt to a minimum is also a must,” he added.

Last month, research from Endsleigh indicated that 29.9 per cent of university-goers believe they will have over £20,000 worth of debt when they graduate.

By Sarah Adie