As Britain's student population prepares to return to university, a new study has found that many have significant concerns about managing their finances
One in five are considering moving back in with parents and transferring to a university nearby to save money
Two thirds are expressing a desire for more regular money support clinics at their universities
Experian has teamed up with charity partner NASMA - helping students to manage their financial health with a UK-wide campus roadshow
London, U.K., 16 September, 2024 – New Experian data reveals the growing financial strain on university students across the UK, with four in five (78%) students admitting that money worries are causing them significant stress. This stress has led to almost two-thirds (60%) of students avoiding social activities with friends, and nearly half (46%) are so anxious they avoid checking their bank balance altogether. A quarter (23%) of students are ignoring all communications from their bank entirely.
The data revealed a 20% increase in credit card usage among students since 2023. Three quarters (72%) of students are relying on credit cards to cover living costs over the past year, with one third (33%) of students having sought crisis loans from university support officers. Almost half (46%) are too anxious to check their credit score, despite the research showing many students are able to pay off their borrowing, which could be helping them build a positive credit history.
One in seven (14%) said they were seriously thinking about dropping out of university this year because they can’t afford it anymore, and nearly one in five (19%) said they’re thinking about moving back in with their parents and transferring to a university nearby to save money. As a result, two thirds (64%) of students are expressing a desire for more regular money support clinics and financial advice at their universities.
In response, Experian has partnered with the National Association of Student Money Advisers (NASMA) to launch a UK-wide campus roadshow. This will kick off at Nottingham University, providing students with the opportunity to receive expert advice and support. The partnership aims to ensure that students across the country have access to the resources they need to manage their finances effectively.
John Webb, Credit Expert at Experian, comments: “Trying to make student loans stretch to cover living costs, as well as a social life, can be stressful. At the same time, students often find themselves with new credit cards or arranged overdrafts for the first time when they start university.
“Used correctly, these can be a great way to build a positive credit history. However, large balances and missed payments can lead to high interest costs and damaged credit scores, but there are ways to help avoid these issues. For example, Experian’s research shows that 33% of students are unaware of balance transfer cards, which can be a good way to manage existing debt, and lower interest repayments.
“That’s why we’ve launched our UK-wide campus roadshow with our charity partner NASMA, to help provide financial guidance for students so they can spend less time worrying about money and more time focusing on their education and enjoying their time at uni.”
Kellie McAlonan, NASMA Chair comments: “It’s vital students are prepared for their student journey, know what to expect, and know that they can access support on campus if they are worried about their money.
“We know from our members that money worries can be prevalent among those studying, so we want to make sure students know that they can reach out for help. It’s really important that students facing anxiety due to finances know that support is available. Our network of money advisers are professionals who work within Universities and Colleges across the country, offering free information, advice and guidance, tailored to individual students and focusing on a wide range of money issues, from student funding entitlements to benefits, through to debt and budgeting.”
“We’re pleased to be working alongside Experian to ensure that students know that this support exists, and that there are steps they can take on campus if they are worried about budgeting, need specialist student funding guidance or just need someone to speak to.”
Ends
Notes
The research was conducted by Censuswide, among a sample of 2,001 UK university students (aged 18+). The data was collected between 23.08.2024 and 29.08.2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
Media contact:
Brands2Life for Experian
Tel: 0207 592 1200 / Email: experian@brands2life.com
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