As high as one in seven students haven’t been able to pay rent and were chased by debt collectors after being unable to pay rent.
A new research has shown that students are suffering from mental illness and cannot afford to buy food due to debt accumulated during university years.
Overwhelming stress levels are felt by the majority of students due to sky-high tuition fees and rising cost of living. One of seven students have stated that they missed rent payments and have been chased by debt collectors as a result.
A dire situation for student:
Intelligent Environments, a financial technology company, has conducted a survey and found that three-quarters of students receiving maintenance loans are stressed about the amount of debt they accumulate while studying.
39% stated that they can’t afford their weekly food shopping. More than a quarter said that they missed rent payments, and 58% completely ran out of money before their following payment.
Advisory board member for the Intergenerational Foundation, Estelle Clarke, stated that the findings were concerning, particularly in light of the Government moving to sell off student loan debts to private companies.
“Student loans put unnecessary pressure on borrowers because they are so expensive. It is upsetting to think of students depriving themselves of food and perhaps enduring loneliness, trapped in their rooms because they cannot afford to eat or go out.” She stated.
Managing director at Intelligent Environments, David Webber, is worried by the results and called on banks to support their young customers and manage their finances.
These figures show how unaffordable the higher education system is becoming, it forces students to take out expensive loans they will never be able to pay off.
Student application numbers from the UK and abroad has fallen dramatically, implying that students are being defer higher education due to the financial repercussions.
National Union of Students (NUS) vice president Shelly Asquith, said that the NUS believes that increased poverty and debt is a main factor in the increase of mental illnesses among students.
Other sources of income:
65% of students with maintenance loans turn to their parents or other family members in times of need. 58% rely on student overdrafts, 27% dip into their savings, 6% on credit cards, and 9% take out payday loans
The top three items students said they spend their money on were rent (78%), food (69%) and utility bills (47%), with the average student loan fund running dry by the sixth week of term.
Fionnuala Allen, a second year Nutrition student at Manchester Metropolitan University, said “People assume students spend their money on nights out, but I regularly have to choose not to go out, so I can buy food. I’ve also had to miss classes and delay assignments when shifts become available and I have to take them when I can. It’s really stressful constantly thinking about money when I should be focusing on my studies.”
According to a study conducted last year, students in England have the highest average debt in the English-speaking world, which is currently estimated at £71bn.
This month the Government initiated controversial plans to sell off billions of pounds worth of student debt to private loan companies, experts warned that such a move could come at a high cost to taxpayers.