Students 'may turn to loans for studies'

Wed 23 Apr 2008 - Published in Loans

An increasing number of students may be forced to turn to hardship loans or part-time jobs due to the effects of the credit crunch on their parents, it has been claimed.

Head of social policy at the National Union of Students David Malcolm said that if more parents find it difficult to make payments on their mortgages or other borrowing, they may not be able to help children studying at university to the same extent as before.

As a result, those in higher education may be forced to find part-time jobs or to request loans from their university.

"If parents are in a situation where they are suddenly paying more on their mortgage ... more students will find their parents won't be able to support them," he said.

But, Mr Malcolm added, such a scenario is purely speculative at the moment, as the effects of the credit crunch on the education sector have not yet been seen.

The amount of money students can borrow through student loans depends on the income of an individual's parents.

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