Uni students’ loans “used as holiday travel money”
Foreign holiday travel money is being paid for out of students’ loans instead of being spent on education, according to new research.
Aviva UK Life’s study has found that more than half of UK students (51%) re-direct loans away from their intended purpose and spend it on luxuries such as holidays abroad, gadgets and alcohol.
As much as 5% admit blowing their entire loan within days of securing their loan, the poll of 1,800 graduates and students shows.
Around one in six students (15%) confess to booking a getaway through their loan’s spending power.
A further 10% plough their loan into weekends away or city holidays rather than on study stationery and books.
Aviva UK Life’s Tim Orton says having such a large amount of cash in students’ bank accounts each term is hugely tempting.
The director says that it is never too early to start budgeting properly, although he stresses the need for students to enjoy being undergraduates.
One way for students to budget effectively when travelling abroad is with the ICE Travellers Cashcard. Top up over a few months prior to travelling to make sure you don’t spend vital £ before you leave.