QUAYS News has conducted a survey, which found that some students rely on short term lending in order to ‘manage’ in between student loan payments.
The poll, which was conducted on social media, found that out of the 26 students asked, 13 had in fact used a credit card, overdraft or loan to get by.
The statistics indicate that student finance may not be providing an adequate amount of money to students to cover the cost of living.
The most popular bank accounts that students at Salford University used were; the Santander 123 Student Account, which offer a 0% interest overdraft of up to £1500 for three years.
HSBC Student Account offers an even bigger £3000 0% interest free overdraft for three years and the chance to increase it at anytime. And the Halifax student account offers a lesser loan amount of £750.00 and an NUS card.
A report published by ‘MoneyMatters’ – an organisation which is set up to help young people manage their finance – revealed in August that the average amount of ‘short-term’ debt per student was £3000.
With student bank accounts offering incentives to choose them over their competitors, it isn’t surprising that more and more students are complaining. Santander’s ‘Must Train’ advert featuring Jenson Button shows the student account’s key features.
Efi Rousi, a Salford University student, told Quays News that living on her overdraft is vital when renting in Manchester and that her loan, which is provided through the student loans company Student Finance for England, does not provide her with enough to cover general living costs.
She said: “I don’t have enough money to spend on rent, so I have to rely on my overdraft to make it through the month…student finance is only enough when paying the tuition fee directly to the university. I try to not go into my overdraft, but this isn’t always possible.”
Lucy Wells, another student at Salford University says that although she does not use her overdraft regularly, she does find living costs at university overstretch her monthly budget.
She said: “I would say student finance is not enough so I understand why people go into their overdrafts but I think it’s only ok to use it in an emergency, I try not to go into mine but some months I run out of money.”
Most University institutions will have a process for those experiencing hardship, many offer scholarships and bursaries for students that aren’t supported financially.
Student Finance have been approached but we are still awaiting a reply.