A survey carried out by Unite Student, a student accommodation provider, indicates that payday loans are being taken out by tens of thousands of students in order to cover the students’ daily living costs.
Approximately 8,500 students were surveyed, and the report’s findings suggest that as many as 26,400 undergraduates are making use of payday loans, as well as 5,400 post-graduates.
The number of students claiming they cannot afford their daily living costs increased by 12 per cent, suggesting that as many as 600,000 students are in financial difficulties. The number of students who faced more debt than they expected also rose, by 7 per cent.
Jenny Shaw, of Unite Students, said: “It’s worrying to see a greater proportion of applicants believe payday lenders are the way forward.”
Although students can receive loans to help cover their costs, a large number of students receive less than £4,000 as their maintenance loan.
NUS president, Megan Dunn, sad: “With maintenance loans failing to cover the spiralling cost of student living, we are concerned many young people may feel they have no option but to risk exploitation by legal loan sharks.”
Payday loans could lead to your financial situation worsening if you fail to repay them in full, on time, so you should consider alternatives to payday loans before taking out a payday loan.
