Debt & Bankruptcy Issues in the UK

UK Students are increasingly living with parents to avoid debt problems. A recent survey of 2200 students found that 20% of students were living at home to save rent money, and many had part-time jobs during term time.

Large levels of student debt are the norm since the introduction of government sponsored loans, which have to be paid back after graduation. Whilst one in four students will graduate without owing any debt, most will borrow money either as a student loan, bank overdraft, or credit card debt. The average debt in the UK after graduation is in excess of £12,000 and is expected to increase to £30,000 by the year 2010.

Last year saw nearly 1000 graduates in the UK forced to declare themselves bankrupt.

Clearly, large levels of debt are increasingly a problem for undergraduates, but it’s disappointing that many are living at home and missing out on the chance to enjoy the famous student social life. Two thirds of the undergraduates who did live at home said that they never participated in social activities, and many spent up to four hours a commuting.

Meeting other students and broadening one’s horizons are important aspects of university life, and it’s a shame that huge debt problems are causing so many students are missing out on what many graduates recall as the best years of their lives.