Students are more concerned at lack of spending money than debt

A study into the impact of financial pressures on students found that everyday money problems were the biggest causes of stress.

Even though students might owe thousands of pounds, this did not worry them as much.

The study also found an increase in what students saw as "manageable" debt.

The research, carried out by Adrian Scott of the University of Bath, shows a more detailed picture of how students are stressed by their finances.

'Fiver more worrying than �5,000'

Worries about money added to levels of depression, anxiety and stress among university students - but it was the short-term lack of cash for paying bills and covering everyday expenses that caused the greatest concerns.

Dr Scott said that students interviewed for the research could be more worried about not having five pounds in spending money - rather than the �5,000 they owed in debts.

"They think there's nothing they can do about the debts, so there's no point worrying," he said.

There were also signs that students were becoming more accustomed to the idea of substantial borrowing - and that their perception of what was an acceptable level of debt was rising upwards.

A few years ago, manageable debt was in the region of �1,300, but now students saw �4,500 as being manageable.

"Although the overall size of students' debt is clearly important after graduation, at university it is whether or not that debt impacts upon their daily existence that really matters," says Dr Scott.

Rising debt

The issue of student debt has a political significance, with the forthcoming increase in tuition fees attacked as likely to deter applicants because students will be intimidated by the accompanying higher levels of debt.

But this research, presented at the conference of the British Psychological Society, is the latest evidence to suggest a change in attitude towards student debt.

An annual analysis of student attitudes, the Unite/Mori survey, published earlier this year, showed students were becoming increasingly acclimatised to the idea of acquiring debt, which would be paid back after graduation.

This is against the backdrop of a five-fold increase in graduate debt in the last decade.