Students warned over loan binge spending

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Students burn through cash fast pic ©JMU Journalism

Students burn through cash fast. Pic © JMU Journalism

The academic calendar has only just begun but some students may already be well on the way to spending their whole university funding loan.

In fact, one in six young people will have blown the entirety of their advance by the end of the first month, according to a survey carried out by discount website, VoucherCodes.co.uk.

Lynne Condell, the Student Funds Manager at LJMU, warns students can become gripped by “a feast or famine mentality” when they receive the loan payment.

Ms Condell said: “For most students it’s the first time they have had to budget their money and it can be a challenge. It’s a skill which has to be learned like cooking or riding a bike.”

Lynne encourages students to budget, setting out how much they need for rent, food and other basics before discovering what will be left for non-essential items. She added: “Take control of your money before your money takes control of you.”

Psychology student Caroline-Alexandria Moore, 23, admits how thrilling it was to feel so flush with cash. She said: “I remember the first day I got my loans in my bank account. I’ve never had that much money in my entire life, it was so exciting. I instantly bought everything I ever wanted. Tattoos, hair appointments, a new laptop, camera and even a brand new acoustic guitar.

“It was a new outfit every night, pre-drinks, club entry fees, then more drinks. Within two months I had nothing left and it hit me really hard.”

Forensic Science student Abigail Charlton, 22, explained how difficult it was after blowing through her funds, telling JMU Journalism: “Struggling with money gave me unneeded stress and anxiety issues. I regret not saving my loan, but it taught me life lessons on how to budget and shop around for the things I wanted.”

LJMU’s Health and Wellbeing centre at the Aldham Robarts Library holds regular drop-in sessions for any student in need of advice regarding finance or other issues which affect their university experience.

About Elle Spencer, JMU Journalism