Students exhausting their loans a month before the end of term

University students are blowing their maintenance loans over a month before the end of term, according to new research from vouchercodes.co.uk.

The survey revealed they are spending almost as much money on alcohol as they are on food and the loans designed to cover a whole term's rent and living expenses are being exhausted in just two months, even though the upcoming term is just over three months long.

As a result individuals are relying on handouts from their families and are dipping into any savings they have, which rarely lasts long.

Many are forced into their overdrafts or start to rack up credit card debt. This is dangerous as it is hard to pay back the money owed as living expenses mount up.

The survey discovered students in London manage their budgets the best, making their loan last just over two months, while those based at institutions in the north-east of England spend most of it the quickest, with theirs lasting just six weeks.

Of all expenses, outside of tuition fees and rent, the biggest is food, including supermarket shopping, takeaways and eating out.

However, alcohol comes in second on the list, with more being spent on it than books, gym memberships and clothing.

Excluding tuition fees, student expenses tally up to an average of £475 a month, with females spending more than their male counterparts, £483 compared to £464 respectively.

Individuals in the south-east spend the most in a month, £531, which is £55 more than the UK average, while Yorkshire and Humberside academics only fork out £464 in the same period.

Anita Naik, lifestyle editor of vouchercodes.co.uk, said: "Students should make the most of their time at uni and enjoy themselves but it’s important they do not get carried away and live beyond their means."

It is important for students to budget effectively in order to avoid more debt than is necessary. Setting money aside for food and rent is vital to ensure people do not need to dip into overdrafts or use credit cards to get by.

By Amy White