Kay Brennan Leeds and Navin Chohan editor

Student debt in the United Kingdom is soaring with a widening gap between those from a higher and lower social background, according to new research into university life.

The report by Unite, an organisation that provides student accommodation services in the UK, was based on a survey of 1063 students in October and November 2001. It found that student debt had increased by 26% in the past year. This is up £877 to £4023, with many from poorer backgrounds being overwhelmed with debt.

Students overall anticipated owing £8133 at the end of their course, up by £1107, with those from lower income households expecting to be £9376 in the red. Many medical students and those in their third and subsequent years already owe more than £10 000.

The student living report carried out by the polling company MORI questioned those in full time undergraduate and postgraduate education in the UK. It found that debt was rising even though the number with a part time job during term time had greatly increased to 43%, with some students working up to 29 hours a week. Three fifths of respondents had a government loan, which increased to 69% for those in their final year. Only 16 % of those surveyed were debt free.

This annual report covers student attitudes to finances, living on a budget and stress, part time work, leisure pursuits, accommodation, politics, and crime. The top social activity is going to the pub, with the average student spending £20 a week on alcohol. One in 20 spends between £51 and £100 in a typical week. Two thirds have a personal or laptop computer and 86% own a mobile phone.

Many of those questioned would like more guidance on how to budget and manage their money, admitting to problems with household bills and credit cards.

Despite the rising debt, some 46% of students prefer applying for student loans to adopting a system of maintenance grants and higher taxes for graduates, which the government is currently considering. A third would like this tax and grant combination with 21% unsure of their preference.

The BMA's annual survey of medical students' finances has also found that average debt has increased amongst respondants. The average amount of debt owed by medical students has increased by 20% from last year to £9 732.

The average amount owed at the point of qualifying as doctors is now £13 350. One fifth of
students in the survey owed over £15 000. Among finalists, the proportion with this amount of debt was 40%. The highest amount recorded in the survey was almost £30 000.

Students from lower income families are experiencing the worst financial hardship. Jen Ciechan, chairman of the BMA Medical Students' Committee, said "Students from less affluent backgrounds are penalised because the current financial arrangements rely on significant parental income. The present system is clearly unsatisfactory if the government is serious in its pledge to attract a broad socio-economic mix of students into higher education."

It is not all bad news for those considering going into higher education. Nine out of 10 students are happy with university life and think the money that they are spending is a good investment for the future. Nearly all, 96%, considered going to university a worthwhile experience.

The full report can be found at www.unite-group.co.uk