The credit crunch plummets students into even more debt as they face higher living costs, rising food prices and increasingly limited future job prospects.
It has been reported that many students are responding to the current state of the economic climate by burying their heads in the sand, allowing money problems to snowball and putting themselves at a disadvantage when it comes to finding a job when they graduate.
A recent survey conducted by the National Union of Students concludes that many students are unaware of even the basic costs of living and don’t have the information and guidance they need to manage their own finances.
In addition, some students are overly optimistic about being able to receive financial support in the form of bursaries, and students who are eligible are failing to claim because of confusion over entitlement.
Another survey commissioned by recruitment agency Reed found that job security is becoming a major concern amongst graduates. It revealed that over half of graduates are “concerned” about finding a job in the current climate, with one in four graduates admitting they would be willing to sacrifice up to five percent of their income in exchange for job security for three years.
It has also been reported that a significant number of graduates are moving towards creative, marketing and media sectors and away from banking and other financial services jobs due to the financial crisis.
Reed’s head of marketing Mark Rhodes warns that “undergraduates need to remember there is a serious side to university.”
“It’s important that incoming university students have an eye on their future,” he added.
Third-year student Danielle Maughan who studies Criminology and Psychology at Liverpool John Moore University says she is finding it tougher in the difficult economic climate.
“Things are getting harder now – my student loan just covers my rent for the year so having a part-time job at university is essential”.
HSBC’s youth and student manager says: “It’s clear students have no idea of the cost of living when going to university, but let’s face it, how many of us did?!”
