Average student debt?

Absinthe_Fairy

Lokolo wrote: »

Haha yes I quite lucky in that respect. I lived in Stafford, which is very cheap!

But my friend in Soton pays around double mine :eek::eek: and my ex OH is paying £7500 for accomondation in London.

I'm not saying I'm not lucky, but I know a lot of people out there who do spend an awful lot on crap which is why I can see how the averages are very high. But I do think a LOT of people can cut down.

In my house (there are 5 of us), I am the only one who keeps a record of what I spend. My friend (the one in soton), also does the same, and he also gets financial help from his parents (he gets a lot more than me too), and is being asked by his other housemates for him to help them control their spending(!!!!) as they had maxed out their overdrafts and are coming back for their final year, still in overdraft! Its crazy.

Not saying that its easy to come out of uni debt free, but its not impossible.

Lokolo wrote: »

Not at all, everyone has a choice where they go. If people would rather rack up more debt than they need to how is that anyone but their owns fault?

Lol, yes I definitely think people spend more than they need to (both students and other people!) - I certainly wasn't guilt-free in that respect! You sound really organised and careful, so many students aren't and I do get where you're coming from, but I honestly believe for most students some kind of debt is unavoidable.

I really don't agree about the 'choice' thing though - I mean, yes, in one sense students have a choice, but I believe very, very strongly that cost should not be a factor in deciding where to go to uni. It's potentially very unfair, if, say, a poorer student feels pressured into choosing a less prestigious uni, or one that does a less suitable course, because it's cheaper to study there than at one with a better reputation. So yes, I studied at York, where accommodation (both uni accomm and private rented housing) is expensive, as is the general cost of living, but I make no apologies whatsoever for choosing it above cheaper places to live.

Sorry, this isn't meant as a personal comment - I don't know anything at all about your uni so I'm not qualified to comment. It's more of a general rant really, as this is something I feel really strongly about!

Absinthe_Fairy

Fire_Fox wrote: »

Quite simply had you not bought so many clothes and had as many nights out you would have ended up in less debt. The Student Income and Expenditure Survey speaks for itself.

Yes, I did have a lot of nights out. I paid for them myself with the money I earned from my part time job, so I really don't see why I shouldn't have. And my wage was around £5.50 per hour, because I was under 22 so wasn't even entitled to the proper minimum wage.

You seem to be making an awful lot of assumptions about my (and that of many students) lifestyle. I bought my clothes from Primark, eBay and charity shops, and occasionally, in the sale, in other cheap high street shops. I rarely spent more than £10 on any item. And last time I looked, some sort of clothing was essential unless you wanted to be arrested for public indecency.

punky__56

I'd just like to point something out here... Everyone is criticising students for coming out of Uni with thousands of pounds worth of debt but please remember if students are entitled to it then they are going to take it! Maybe the bursery/ grant scheme needs to be changed to any money you receive in a grant means you're not entitled to so much loan etc which would 1. Mean that students didnt have such a ridiculas amount of money to spend and 2. Mean that students wouldnt come out of Uni with so much debt because they were entitled to grants.

I am on a 5 year course (includes placement year and foundation year.)

I am from a low income family so was entitled to full grants/ bursery from university so I get £3000 grant from SLC, £1000 bursery from uni, £3500 Maintenance loan and £3000 to cover tuition fees each year. I also work as many hours as i possibly can to earn more money.

Now I think this is an absolutely ridiculas amount of money, but i am going to take all the money I am entitled to and i dont see why i should not take it! I save all my loan/ grants and live on the money i earn as much as i possibly can.

I live in the cheapest house i could find in the area close to my uni (Manchester), I budget for everything and get my parents to visit me rather than going home.

I dont actually see the problem with coming out of uni with ~£30k of debt because i would have just been plain stupid to refuse the money the government are offering me!

Lokolo

punky__56 wrote: »

I'd just like to point something out here... Everyone is criticising students for coming out of Uni with thousands of pounds worth of debt but please remember if students are entitled to it then they are going to take it! Maybe the bursery/ grant scheme needs to be changed to any money you receive in a grant means you're not entitled to so much loan etc which would 1. Mean that students didnt have such a ridiculas amount of money to spend and 2. Mean that students wouldnt come out of Uni with so much debt because they were entitled to grants.

I am on a 5 year course (includes placement year and foundation year.)

I am from a low income family so was entitled to full grants/ bursery from university so I get £3000 grant from SLC, £1000 bursery from uni, £3500 Maintenance loan and £3000 to cover tuition fees each year. I also work as many hours as i possibly can to earn more money.

Now I think this is an absolutely ridiculas amount of money, but i am going to take all the money I am entitled to and i dont see why i should not take it! I save all my loan/ grants and live on the money i earn as much as i possibly can.

I live in the cheapest house i could find in the area close to my uni (Manchester), I budget for everything and get my parents to visit me rather than going home.

I dont actually see the problem with coming out of uni with ~£30k of debt because i would have just been plain stupid to refuse the money the government are offering me!

No-one is saying not to take, we are just saying you don't need to spend it just because its there.

A lot of the students spend more than they need to, on luxuries, when they shouldn't. They could save the monies instead.

neas

My accomodation was 3k a year for 3 terms... that was 5 years ago!.. In a southwest town its 110 pound per week for a 39 week period.... which comes out at 3.5-4k per year accomodation costs.

Accomodation for a 3 year graddie would be at 11k-12k of debt. Tuition fees are now about 3k per year.. but this varies depending if you go to a poorer uni or cheaper one i guess.. So 9k for 3 ye3ars.

12k + 9k = 21k pure debt just from a roof over your head and the tuition fees. Now yes you can get a job but most students would earn 5k each year max with a 12-16 hour a week part time job at B+Q/Tesco.... I should know i worked 4 years in B+Q to live off and save a bit.

And i personally had 6k net debt but only because my tuition fees were 1k a year and helped by parents.

If i hadnt had help from parents and new tuition fees my net debt would have been around 6k+ 12k = 18k... and that would be working 15 hour weeks and not really going out that much.

(Yes i did a 4 year master course).

I still think even working your !!! off and having no social life/living frugally and PASSING you course would leave you with 12k debt minimum these days. And with going out a bit and doing what most students normally do.... about 17-18k debt... without a job would be higher.


And i hate all the average things... they prob dont take into account some students

A: get grants because they fromt poorer families
B: Get mumm and dad to pay for some of it so have less debt.

Absinthe_Fairy

My accommodation was around £3,500 a year for halls of residence in first year (and that was six years ago, it'll be a lot more now) and around £4,000 for rent and bills renting privately in 2nd and 3rd years (moving back into halls wasn't an option).

ThinkingOfLinking

Lokolo wrote: »

Yes but frozen ready meals and super noodles are far nicer :cool::D

I disagree. I get hungry so fast after eating those sorts of things...it's because they are full of rubbish that gives you a short term hit. I adore porridge; cheap, tasty, filling and keeps you going for ages.

Fire_Fox

Absinthe_Fairy wrote: »

I really don't agree about the 'choice' thing though - I mean, yes, in one sense students have a choice, but I believe very, very strongly that cost should not be a factor in deciding where to go to uni. It's potentially very unfair, if, say, a poorer student feels pressured into choosing a less prestigious uni, or one that does a less suitable course, because it's cheaper to study there than at one with a better reputation. So yes, I studied at York, where accommodation (both uni accomm and private rented housing) is expensive, as is the general cost of living, but I make no apologies whatsoever for choosing it above cheaper places to live.

You seem to be making an awful lot of assumptions about my (and that of many students) lifestyle. I bought my clothes from Primark, eBay and charity shops, and occasionally, in the sale, in other cheap high street shops. I rarely spent more than £10 on any item. And last time I looked, some sort of clothing was essential unless you wanted to be arrested for public indecency.

I haven't assumed anything: I've taken most of my information from the self-reported Student Income and Expenditure Survey. You admitted you had spent money on nights out and clothing in your earlier post.

My ex-husband went to the University of York, graduating with a PhD in the late nineties. No tuition fees then, but no grant and very limited financial support from his mother (father deceased). His earnings were all he had - so he went round the supermarket with a calculator, cooked from scratch at home for friends instead of going out and bought new clothes when they wore out, he lived in a dingy bedsit above a pizza place for four years. After six years study he had nothing more than a small overdraft.

I'm not criticising you or any student for their spending habits, you clearly don't regret living beyond your means as it enhanced your student experience. The reason I appear so harsh is I think it's very dangerous to start thinking massive student debt is unavoidable. This attitude is what sets many up for living on credit for the rest of their lives ... cars on finance, holidays on the credit card. :rolleyes:

If I can make just on undergraduate think about what level of debt they are comfortable in graduating with and budget to keep within that, then I have achieved what I have set out to. As the bank advert says - there is another way.

Rosemary7391

If my loans are the same for the next 4 years I'll come out of uni with just over 30K of debt - and my maintenance loan doesn't cover my rent this year (4689, in catered halls, but no choice about that...)

Working during the holidays I will hopefully earn around £2500 to pay the rest of my rent, books and travel costs, and a few luxuries. If I have any left over, it'll go into savings. Not all students spend money for the sake of it, but its nice to have the odd night out and small luxury every now and again. You can't study all day, and sitting and staring at a blank wall doesn't appeal. I can't see how anyone could afford to spend over 6k on top of accommodation though! That is excessive.

Absinthe_Fairy

Fire Fox - you've definitely got a point! I think if students start racking up loads of debt on credit cards and stuff there's a problem, but when it's student loan debt, annoying as it is, it's a different kind of debt. I definitely did spend beyond my means (not massively, as the only debt I came out with was my student loan and an interest-free overdraft that I paid off the summer after graduating, working two jobs), but if I'd had to get loans at commercial rates, or put stuff on credit cards, I would have been much more frugal.

It never even occurred to me to try and save money during my student days, or to use the money earned from part-time work to pay off my loan. I reckoned I should enjoy myself in the limited time I had available! :rotfl:

(Should point out, one rather large thing I'd forgotten I'd spent money on - driving lessons! This cost me about £1000 overall, and was definitely something I didn't have to do, but it'll come in handy!)

I've just been thinking, and people from low-income families are entitled to (correct me if I'm wrong!) a £3000 grant, a £3000 tuition fee loan and a maintenance loan. They could use the grant to pay off the tuition fee loan, thus coming out with £9000 less debt at the end of the course, and would be in the same position I was in as an undergrad (no tuition fees to pay, but no grant either). So they don't need to come out with so much debt...

Fire Fox, Lokolo, I'm beginning to come round to your way of thinking! (Took me a while!)