Press Release

ARE STUDENTS READY FOR THE FINANCIAL PRESSURES OF UNIVERSITY?

Latest Equifax survey reveals 40% of students admit they did not save any money ahead of going to university

London, 18th September 2009 - Leading instant online credit information provider, Equifax, is highlighting that many under-graduates could face real money worries right from the start of their university years as a survey conducted amongst students at the beginning of September* has revealed that 40% of students did not save any money ahead of going to university.

"With no savings to back them up at the start of their degree, many of this year's freshers may need to borrow from family or friends or take out a credit card at the start of their studies" said Neil Munroe, External Affairs Director, Equifax. "And the worry with turning to credit cards is that if students don't manage this debt from the outset, they may get themselves into serious financial difficulties over the next few years.

"Our survey revealed that 20% of students just pay off the minimum amount required by their credit card company every month. So with interest mounting and the possibility of late payments, their debt could soon spiral. If students find they need a credit card, we think it is important that they try to view it as a resource for emergencies rather than a way of funding a night out - or they make sure they are paying off as much of the balance as possible each month.

"There are, of course, those students who are lucky to have parents able and willing to help with their finances. Of those students surveyed, 30% have received money from their parents whilst studying. However, with the added pressures already being faced by many families, some parents could find it hard to financially support their children any more than they are already.

"With the recent news that at least 50,000 students could be starting university without grants or loans due to the huge increase in applications to the Student Loan Company, many students may be forced to look for other ways to survive financially in the first few weeks and months of university life. Future debt is already on the minds of many students, with 35% saying they are worried about repaying their debts whilst at university. So this delay could add to their worries", concluded Neil Munroe.

ENDS

*Equifax surveyed students on 14th September 2009 -538 responses analysed

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: louise@harrisonsadler.com