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Students’ huge debt crisis

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Students’ huge debt crisis

With student debt at a higher level than ever before, final year students are more likely to have jobs and work for longer hours during term time resulting in course dissatisfaction, lower grade expectations and less participation in extra-curricular activities, reveals the Higher Education Careers Services Unit (HECSU).  

Futuretrack is following almost 50,000 students from UCAS application until they get their first job. The latest report from stage three, published today (18 November 2010), charts how work and debt influenced their final year. It reveals that third year finalists are more likely to have a job than in their first year, with 78 percent working at some point. Students in Scotland and Northern Ireland are considerably more likely to have jobs, whereas those in Wales and the East are least likely.

Reasons for doing paid work while studying shifts in the third year towards funding living costs and gaining work experience. However, almost two thirds (62 percent) of finalists are working to avoid debt, with a third anticipating debt over £20,000. The average expected debt on graduation is reported to be £15,700 and those owing at least this amount are more likely to feel that it may restrict their future options, with the prospect of debt inhibiting decisions to pursue postgraduate study or be able to wait for a good job.

Jane Artess, research director at HECSU says: “We expected students to cut down the time they spend working in their final year, but this is not the case. Not only are we finding that these students are more likely to work than in their first year, but the hours they spend have also increased. Average hours of paid work per week for women rose from eight to more than 12 hours while men worked just over 13 hours, nearly five hours more than in their first year.

“Already we have found that this is having a detrimental effect on their university experience, a situation that isn’t likely to improve for this year’s finalists as debt continues to stack up.” Professor Kate Purcell leads Futuretrack at the Institute for Employment Research, University of Warwick, she adds: “It is too early in the study to find out the impact of working on academic achievements, but we can say that fundamental aspects of student life are affected with those working long hours more likely to be dissatisfied with their courses, to predict lower grades for themselves and participate less in extra-curricular activities.” 

23 November 2010

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