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Cost of living crisis: 84% of students concerned about finances, survey finds

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University students are finding it increasingly difficult to manage financially because of the cost of living crisis. Photo: Getty.

Six in 10 university students feel they are struggling financially while 84% are concerned about the cost of living crisis, according to a new survey by marketing consultants The Property Marketing Strategists (TPMS).

Rent was the most important cost for students with 62% seeing it as a priority, the survey found. Socialising was seen as the least important, with 50% ranking it the least of their concerns, "showing the cost of living is impacting their day-to-day," according to TPMS.

In July 2022, the National Union of Students (NUS) found that the usage of food banks amongst students rose from 5% to 11% in the space of six months.

A third of students were living on less than £50 a month after paying rent and bills.

The survey of 3,500 university students, college students and apprentices across the UK found that 90% said that money worries had an impact on their mental health with 31% of those saying it affected them in a "major" way.

Read more: Cost of living crisis: Grocery prices rise at fastest rate since 2009

Almost £20bn is given out to around 1.5 million students in student loans each year.

For students who started degrees in the 2021/22 academic year, the average debt is expected to be £45,800, according to official data.

The cost of living crisis has seen a rise in the cost of everyday food items as well as energy bills.

The energy price cap could reach as high as £5,000 next year, according to independent energy consultants.

Sarah Canning, co-founder of TPMS, said: “Our research reveals the next generation are already concerned around the cost of living. We are all feeling the squeeze from the current economy, but students should be more concerned around their outcomes at university over whether they are going to meet their rent this month.

“We asked almost 1,000 students to rank their spending concerns, socialising came out last — demonstrating that meeting basic requirements of rent, bills, food, travel ranks above it; showing the cost of living is impacting their day-to-day.

“I am concerned if this isn’t addressed we’ll see a rise in student homelessness, which will have grave impacts on their life paths long-term.”

Read more: UK university students face substantial cuts to value of maintenance loans

A NUS spokesperson, said: “Huge increases to the price of bills, food and living costs coupled with soaring rent has students on the brink. We’re hearing from students struggling to get by, who can’t afford to do their laundry and are cutting back on showers to make ends meet. They can’t even cover the cost of getting to the library or classes.

“This is having a severe impact on their mental health, being kept awake at night due to finances. We’re seeing stress and anxiety piling on them from bouncing debt between different cards to stay afloat. Despite all of this students are being completely ignored by the government. These findings are bleak; we’re knee deep in a cost-of-learning crisis that will affect the poorest students the hardest."

Watch: Is it financially worth going to university?