Almost a third of university students are being driven into extra debt because their loans are not enough to cover the rising cost of living, an official survey has found.
Figures published on Friday by the Office for National Statistics (ONS) showed that 30 per cent of students in England have taken on new debt in the past three months, with the majority saying it was because their student loan was “not enough to support their living costs”.
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In total, six in 10 out of almost 2,000 students surveyed by the ONS earlier this month said their student loans were too meagre to keep pace with soaring inflation.
More than three quarters of students, including both undergraduates and postgraduates, said they were concerned that the rising cost of living might affect how well they do in their studies.
In total, 92 per cent of higher education students surveyed by the ONS reported that their cost of living had increased compared with last year.
A similar survey published by the ONS in November showed that students were skipping lectures to save money during the cost of living crisis, with large proportions considering pausing their studies for a year, changing to remote learning or moving back in with their parents to cut spending.
Responding to the latest figures, Dr Tim Bradshaw, chief executive of the Russell Group of elite universities, said he was concerned that “pressure is only going to increase”, with maintenance loans for students in England set to increase by just 2.8 per cent over the next year.
Dr Bradshaw noted that the figure is well below the current inflation rate of 10.1 per cent, and “even more out of touch with rates of food inflation”, which has seen the price of some groceries such as muesli up 87.5 per cent and sausages up 58.2 per cent over the past 12 months, according to Which?.
It comes despite the Department for Education (DfE) admitting earlier this month that the Government’s plans to uplift maintenance loans in England by only 2.8 per cent next year would have a “negative impact for students” across the board, and could mean they have to cut back on food and books.
An internal impact assessment by the DfE said the “recent spike in inflation” meant loans would have to increase by 13.7 per cent next year to “maintain their value… in real terms”.
The DfE report also suggested that the single-figure loan rise could put many low-income students off going to university altogether, and that students who did decide to go would have to cut back on spending.
“As a result, many students… will not be able to make the same spending decisions as they did previously with regards to accommodation, travel, food, entertainment and course-related items such as books and equipment, the costs of which will have been rising over time,” the DfE’s analysis said.