According to recent research from Push*, the new students heading to university this autumn could end up graduating with over £23,000 of debt. With the economic outlook continuing to look gloomy, leading credit information provider, Equifax, believes it has never been more important that students going to university are more pro-active with managing their finances.

“In the midst of the economic downturn we are now experiencing, it’s vital that students keep a keen eye on their financial situation, especially as their parents may not be able to bail them out” confirmed Neil Munroe, External Affairs Director, Equifax.

“Students and their parents can easily run the risk of misjudging what they can afford when it comes to funding student life. With recent studies** revealing that the average parent thinks it would cost about £12,550 for their child to complete a three-year degree course compared to the data from the latest survey suggesting debts could be around £23,000, learning to budget from the start will be the key to students staying on top of finances.

“Young people need to be more financially savvy than ever before, but this doesn’t mean they have to miss out on going to university. With a little careful preparation and budgeting, students can avoid getting into financial difficulty, which will help them deal with the realities of graduate wages. Being careful now could secure the future of their finances, as well as their education and career prospects.”

Equifax’s Top Tips for Finances whilst at University
• Budget – Draw up a budget and continuously review it. Remember to consider tuition fees, accommodation and living costs, not forgetting books, socialising and recreation.
• Check your bank balance often. Make sure you are constantly aware of your current balance so that you can avoid over-spending.
• Make the most of discounts -Take advantage of student discounts at the cinema, shops and on the train.
• Money as gifts – Ask for money for Birthday/Christmas presents.
• Keep up to date – Avoid missing payments whilst at University as this will affect your credit report and could make obtaining credit more difficult.
• Stay in digs – Staying in University accommodation for as long as possible will be cheaper.
• Part-time work – Get a part-time job and work through the holidays to supplement your student loan.
• Check your tax code – Make sure you are in the right tax bracket.
• Use credit with care – Be cautious with credit cards. Many students end up paying thousands in interest and late payments. If you must resort to getting a credit card, view it as a resource for emergencies rather than a way of funding a night out.
• Ask for help – If you’re in financial difficulty, don’t be afraid to ask for help. Speak to a bank’s student advisor or the welfare officer at your Students’ Union. Or contact the Citizens Advice Bureau, CCCS or National Debtline)
• Watch out for fraud – Be vigilant against fraud. As a student you move around a lot and share halls with strangers so your personal details could be exposed. Invest in a shredder and check your credit report once a year to ensure you have not fallen victim to ID Fraud. www.equifax.co.uk

* Push survey of 2,024 students released August 2009
**Figures from a poll for Birmingham Midshires and the National Union of Students released October 2008