Statistics show that more and more college students are leaving school with a lot of debt. The amount of debt students have is getting bigger every year, and many will have to pay it off for years after they graduate. It seems that students are just as addicted to credit and spending as everyone else. Even though most students don't work and either get money from their parents or borrow it, they continue to spend millions of dollars each year.
There are many places where these costs show up. Most of the money is spent on housing and other living costs. Plus, there are the costs of getting to and from school, travelling during the holidays and summer, and having fun. Even though most students are responsible with their money and are not as out of control as many patents would have you believe, they still spend a lot of money on entertainment and socialising.
Employment
A lot of students will also have part-time jobs while they are in school. There are a lot of jobs out there, and most students who want a job won't have trouble finding one. Employers like that they are flexible and willing to work odd hours. They also like that they are usually happy to work for minimum wage or close to it. So, even though there are jobs, they usually don't pay much, and students who work more than 10–20 hours a week are probably putting a lot of stress on their studies and putting their chances of success in the future at risk.
Student loans make up most of student debt. Based on eligibility requirements, the company that gives out student loans gives these. These loans are cheaper than what you can get from a high street bank, and there are other big benefits for students as well. First, students won't have to pay back their loans until they make a certain minimum amount, which is currently around GBP15,000. Then there's the fact that loan payments are based on how much money you make, so they're always pretty easy to pay back. Students are given as much time as they need to pay back their loans, and, as we've already said, the interest rates are very good.
Overdrafts
But in addition to these student loans, many students will also have debt from other sources. Most banks give students interest-free overdrafts of up to GBP2,000, but most students use this money up pretty quickly. There are also bank loans, store cards, and credit cards. All of these add up to a lot of money that most students have to pay back.
