According to the latest research, students are not spending their loans on their education, more money is being spent on clubbing, drinking and cosmetic surgery rather than on books.
A survey of 1,500 university students made the latest discovery. Students were candidly honest about their spending habits on loans that are to be paid back once they gain full-time employment.
University website ‘The Student Room’ initiated the survey and discovered that 26 percent of students spent their loans on drinking and clubbing, and 30% spent theirs on shopping.
Other interesting survey results included cosmetic surgery, gambling, tattoos, and strip clubs.
The research also suggests many students have no financial planning skills, and were unaware of the consequences associated with their frivolous spending. They also discovered that an astounding 16 per cent spent their entire loan within one month.
Over half of the students surveyed stated that they wanted to live within a budget but didn’t know how to. This indicates that they have received no support in the area of financial planning from either academic staff or parents.
A shocking 54 per cent of students claimed that they were unaware of the amount of debt they would have accumulated after graduation.
Head of the survey Hannah Morrish, the Student Room’s community manager said that the results are indicative of student’s inability to remain debt free after graduation.
“Overspending is not a surprise; however, it is the extent to which students are overspending and their ignorance on such matters that is concerning. There needs to be more awareness made available on effective financial planning. It isn’t cheap attending university, but the way students are choosing to spend their money puts them at risk of being in debt over the long term. There are a number of free services to teach students how to stay out of debt. Which includes The Student Rooms forum on money and finance.”