Student loans should be spent sensibly

Student loans should be spent sensibly, with university goers keeping to workable budgets, it has been suggested.

Paul Lewis, vice president of Credit Confidential, noted it is essential undergraduates establish good spending habits while in higher education.

The industry figure said it is common to see those entering university for the first time blowing all of their student loan allocation within the first month, as many will not be used to taking such personal control over their bank accounts .

Mr Lewis explained: “[They] don’t budget or parcel out the money per week or per month for the rest of the term and very rapidly get into problems.”

Students looking to get a better grip on their expenditure may therefore want to sit down at the beginning of each term and work out how much cash they are going to spend, either on a weekly or monthly basis.

His comments follow recent findings from Credit Confidential that showed scholars this year are spending more on academic texts than they did in 2010.