Going to Uni: student debt & money worries

These days, most undergraduates are expected to graduate with a debt of around £25,000. So it comes as no great surprise that 71% of their parents are concerned about the cost of supporting their children financially while they`re studying.

That`s one of the findings of research just published by CFEB - the Consumer Financial Education Body - which goes on to reveal that a full third are `very` or `extremely` concerned.

It all underlines the importance of being financially savvy before heading off to university, but the research reveals how many new students aren`t familiar with some of the basics when it comes to money and debt.

For example, a third of students didn`t know that a debt from a doorstep lender will usually cost a lot more per year than a debt from most other lenders.

Over three quarters of them, meanwhile, didn`t realise that a bank can ask students to repay their overdraft debt in full at any point. As CFEB points out, any bank or building society can do this (or reduce the overdraft limit) if they become concerned about the individual`s ability to repay their debt - or if they are `reassessing their own risks`.

"Living away from home for the first time and managing on a budget can be challenging for students and their parents too," said Tony Hobman, Chief Executive of the Consumer Financial Education Body.

"But parents have a really important role to play in helping their son or daughter make the transition to financial independence - talking about money and encouraging them to keep track of their spending is a great starting point. Our Flying Start campaign provides useful tips and tools to help parents with these conversations, and nudge new students towards healthy financial habits."

That campaign aims to help students and their parents prepare for the challenges ahead. It provides a range of guides, tools and resources designed to help them understand money and debt - from a budget planner and guides to insurance and bank accounts to articles and guides on things like `Cards and loans` or `Dealing with debt`.

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Tags: university, debt, uni debt, student, student debt, undergraduates, CFEB, Consumer Financial Education Body, Cards and loans, Dealing with debt

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