In the grip of debt

The abolition of grants and the imposition of tuition fees had forced the debt burden to grow year on year, says Alan Haden, of Worcestershire-based Haden Insolvency.

According to the latest Government statistics, British consumers owe £70bn on credit cards and around £600bn in mortgages.

The number of student loans rocketed by 17.5 per cent last year, leaving 73.3 per cent of undergraduates struggling with spiralling debt.

And National Union of Students figures show graduates owe an average of £5,286 by the end of their courses.

"Student debt has been rising for the past 10 years, since loans were first introduced," Mr Haden said.

"But little is known about the longer-term effects of this extraordinarily early descent into debt, or how long it takes for the average student to move back into credit.

"As with many adults in financial crisis, there's always the overwhelming temptation for students to borrow more money in the mistaken theory that, somehow, it will resolve itself in the end. Unfortunately, this rarely happens."

University College Worcester's student union president, Kelly Babbs, said students had been crippled by tuition fees and a lack of grants.

"There are students living on campus because they can't pay rents, and those who owe the university money for tuition fees," said Miss Babbs.

"The university has a hardship and access fund, which is provided with Government money, but there's no more money left.

"If the Government can't get more funding for universities, or abolish tuition fees, then they should increase these hardship funds."

More than 50 per cent of UCW undergraduates work part time. The student union said they had taken on "all sorts of jobs" that paid minimum wages.

"We have students working at Kays and in call centres, some are working 12-hour shifts as well as trying to study," said Miss Babbs. "With a lot of money being paid out each month for rents and bills, they have no alternative."