Generation debt's financial problems only just beginning, warns UCU

UCU said the reports served as a worrying reminder of the ever-increasing costs of university. The union warned that students suffering now at university will be hit again on graduation as buying a house or starting a pension will be distant dreams for 'generation debt' as they come to terms with repaying their student debts.

The union said the government must be prepared to think carefully what direction higher education and student funding will take ahead of next year's fees review. It reiterated its belief that any increase in student fees will harm the government's laudable aim of opening university up to students from under-represented backgrounds.

UCU also criticised the confusing system of grants and bursaries for students and called for a simpler system that would ensure students can easily apply for the money they are entitled to, making meeting the rising costs of living less stressful.

A survey from the National Union of Students (NUS) reveals that prospective university students are underestimating the basic costs of living such as groceries, household bills and travel by nearly £450 a year.

Also released today is a survey of student finance by Push.co.uk that reveals students who started at university last year can expect to owe over £17,500 by the time they leave and new students should reckon on nearly £4,000 more than that. The annual survey found that student debt now tops £4,500 for each year of study - a hike of 9.6% since last year. 

UCU general secretary, Sally Hunt, said: 'What people underestimate when they talk about student debt and the cost of living is the impact on the individual. Students are working more hours than ever before to try and meet the rising costs of living at a time when their debts are hitting record levels. Struggling to pay the bills, racking up record debt levels and trying to keep on top of your studies is incredibly stressful.

'Lecturers have little desire to teach students who are shattered from working long hours to pay the bills or stressed because of their financial situation. It is students from poorer backgrounds that find themselves hit the hardest as they are less likely to be able to rely on financial support from their parents. Although, getting on the housing ladder or starting a pension will be distant dreams for the majority of generation debt. The government must reject calls for higher fees and greater student debt in next year's fees review.

'Many students that are entitled to financial support are being failed by the complicated system of bursaries. We need a simpler and fairer scheme where all students can apply with ease for the money they are entitled to.'

• the NUS report can be found here (.doc)
• the Push.co.uk report can be found here