Students admit to gambling to supplement their finances

The Stark findings from a research report by Future Finance and Censuswide into the financial challenges faced by students in the UK show the financial pressures many students are under.

In the North-East 31 per cent of students surveyed have gambled to supplement their finances with four per cent taking part in medical research

One in four (25 per cent) of North-East students surveyed have outstanding loans to a pay day lender and 47 per cent owe money on at least one credit card

More than eight out of 10 (82 per cent) of North-East students feel unable to make the most out of their university experience due to financial constraints with 37 per cent harbouring serious concerns that the costs of living and tuition fees will render them unable to complete their university course

More than two thirds (69 per cent) of North-East students have a part-time job, with 65 per cent of those with a part-time job reporting that they worked overtime

As the costs of higher education continue to rise, a survey by Future Finance, the UK’s first specialist student lender and survey company Censuswide, has found that students are increasingly resorting to ever more desperate means to make ends meet.

Nationally, the survey polled 1,000 undergraduate and postgraduate students across the UK. According to the findings, almost one third of those surveyed (29 per cent) admitted to gambling to supplement their finances with a further 12 per cent disclosing they had taken part in medical research to raise extra money.

In addition, high numbers of students are resorting to expensive forms of short-term finance with nearly 27 per cent of students having loans outstanding to a payday lender and nearly 52 per cent owing money on at least one credit card.

Many of the survey’s respondents are concerned that financial challenges could prevent them from completing their studies: 83 per cent of students recorded that they felt unable to make the most out of their university experience due to financial constraints, with 59 per cent of students revealing that they worry about their finances most, if not all, of the time. Overall, 28 per cent revealed that they harboured serious concerns about being unable to complete their university course because they cannot meet the rising costs of living and tuition fees.

Taking on a part-time job or using the ‘bank of mum and dad’ stood out as two methods of finance on which UK students are increasingly forced to rely.

More than two-thirds (67 per cent) of those surveyed said that they currently have a part-time job. A quarter of those with a part-time job feel that their education is suffering as a result of needing to spend time working rather than on their studies.

Just over half of students said that they would turn to their parents first for financial support if they were struggling financially. Conversely, only eight per cent said they felt they could turn to their university for assistance.

However, despite the cost of higher education (both in terms of tuition fees and living expenses) it remains a good investment in the UK.

According to the first release of Graduate Labour Market Statistics published by the UK Government’s Department for Business Innovation & Skills on 9 December 2014, the earnings premium for graduates stands at £9,000 above individuals without a degree. Postgraduates earn an additional premium of £9,000 a year on average. According to the figures, the average graduate salary in the autumn of 2014 was £31,000 and for postgraduates it was £40,000. For non-graduates, it was £22,000.

Brian Norton, chief executive of Future Finance, comments: ““Future Finance was established to give UK students access to a tailored, affordable and transparent financing option to help bridge this gap. If government loans aren’t an option or aren’t enough, we believe that our loans with student-friendly features such as low payments until after graduation and payment holidays to help with rough patches, are a compelling alternative option for those considering more expensive sources of finance such as some bank loans, credit cards and payday lenders.”