Money News
13th August 2008
Higher living costs fueling student debt problem
Students' failure to estimate their expenditure on living costs is contributing to the mounting finance debt problem faced by graduates, a new study suggests.
Research conducted by the National Union of Students (NUS) found that students spend some £450 more per year than they expect.
A poll of students found that they predicted their outlay on groceries at 3510, when in fact it is £710.
They also underestimated their spend on household bills, with the majority predicting an outlay of £580 compared with the actual figure of £740.
NUS President Wes Streeting said: "It is clear that many students are sleepwalking into financial crisis.
"As the credit crunch kicks in, and with food and fuel costs set to rise even further, we can expect more and more students to get into serious financial difficulty, with many having to resort to taking out commercial loans, or being bailed out by their parents."
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