Students heading off to university now face annual tuition fees of up to £9,000 compared to maximum annual fees of £3,000 just a few years ago.
Now the Fourth annual Lloyds Bank Student Finance Report has revealed that student debt has climbed by 14% in a year-on-year comparison, rising from an estimate of £16,909 to £19,217.
Growing cause for concern
Almost half (47%) of students are concerned about the level of debt they are taking on during their studies, while 40% of students are struggling to balance their monthly finances.
41% of students have turned to the Bank of Mum and Dad to get a cash boost to see them through their degrees.
Further figures from the research revealed that money woes are weighing so heavily on the minds of many students that some are contemplating leaving university to take up a full-time job. This is true for 17% of full-time university students and underlines the financial commitment of attending university in the current climate.
The cost of tuition fees is also a key factor in whether 34% of students take up a university place or not.
Commenting on the plight faced by today’s students, Phillip Robinson, Director of current accounts for Lloyds Bank, said:
“An ever increasing number of students are worried about the debt they are taking on to meet the rising cost of university, with students’ estimated level of debt at £19,217.
“Student current accounts are in place to help ease the financial burden of university. Students should look for accounts that offer an interest and fee-free planned overdraft, as well as discounts and cashback offers. Money management tools are also in place for students, together with banking apps to help them manage their money on the go and feel more in control of their finances.”
Strategies student use to manage their money
The research also revealed that students used a number of strategies to help manage their money, with the number of students taking on work to support themselves through university rising by 3% to 46%.
Prepaid cards could also help students who have a fixed amount to spend each month. Students can only spend what is on their card, while being able to top up their card online once they have more funds available.
As a result, a prepaid card can be a hugely beneficial budgeting tool for students as they face the type of fees which are required to attend university in the UK at the moment.