Debt Mounting For Students In Scotland

Tue, 11 Aug 2009

More than half of students in Scotland have been forced to turn to expensive commercial debt in order to finance their higher education studies, according to a new study.

A report by the National Union of Students (NUS) Scotland revealed that 56 per cent of university students have borrowed heavily through the use of credit cards, bank loans and overdrafts, while two-thirds owe money to their friends and family.

The ‘Overstretched and Overdrawn’ report, which polled more than 6000 students on their finances, also showed that 70 per cent of those studying in Scotland are working more than the recommended ten hours a week to help pay their bills .

The study further revealed that 44 per cent of university graduates, 38 per cent of post graduates and 31 per cent of college students thought commercial loans were their biggest concern.

The report said: "Degree level students are more likely to be in all forms of debt, especially student loan and debt to family and friends. However, they are also more likely than other groups to be in commercial debt ."

It added that the current economic recession has had a huge impact on students and called for the government to improve financial support .

The NUS said in the short term it wanted the government to raise the minimum loan available to all students and increase the value of grants to poorer students to prevent them from being forced to drop out.

In the longer term, NUS Scotland said it wanted a minimum student loan of £7,000 and the loan to be gradually decreased as grants are increased to reduce student debt .
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