The Royal Bank of Scotland (RBS) claims that most school leavers have not budgeted for university and those that have are underestimating the cost, often expecting parents to pick up the bill.
Paul Jeffrey, head of student banking at RBS, commented: “Our Financial Realism Report highlights the need for school leavers to prepare financially for university.”
The report comes as this year’s students are set to be the first to be charged top-up fees, meaning that they will incur even more debt than previous generations of undergraduates.
But it is not just fees adding to student debt, school leavers are underestimating how much they will spend on alcohol each term by up to Â£87.70.
With RBS offering overdrafts of up to Â£2,500 for students, some might get by in the short-term but could face graver debt problems in the future.