College Tribune | September 16 2008
News
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No escaping the student debt trap A significant amount of phone calls to governmental monetary advice centres now from under 25’s and students New trends in those applying for UCD Student Assistance Fund The Union of Students in Ireland has announced that 28% of all calls to governmental monetary advice services are now coming from people under the age of 25, a significant increase in comparison to previous years. Shane Kelly, President of the USI, said that the financial problems faced by students this year are compounded by the fact that many students found it difficult to source employment. As a result of economic conditions, the casual jobs that students usually take up were reportedly scarce upon the ground. The lack of summer work also meant students had little or no savings going into the new college year. Many were also left with the added burden of paying rent over the summer, even though they had returned to their home counties. In a bid to avoid the usual scramble for accommodation in September, students were forced to sign the twelvemonth contracts that many landlords are now demanding. According to Kelly, “This is crippling students financially as they are paying rent for a place that they are not even living in.” Meanwhile, a freeze has been placed on local authority student grants. “This is a net cut for students across the board”, said Kelly. He added that while there is less and less support provided
■■ Karina Bracken for students, student unions and charities such as the St. Vincent de Paul are receiving distressed calls from those with financial difficulties. The UCD Students’ Union runs a limited Student Assistance Fund programme that offers some help to students struggling to make ends meet. Conor Fingleton, Students’ Union Welfare Officer, says that he has noticed a new trend in third and fourth year students enquiring about the scheme. “These students had no previous need for help, but due to the lack of jobs this summer they are finding it hard to cope financially.” The cost of going to college has recently been estimated at €8,403 for a student living away from home, and €3,861 for a student living at home. Just over half of students are living in rented accommodation, facing the full price tag. Many UCD students are turning to Credit Unions and banks for loans, overdrafts and credit cards to meet these costs. Over half of students have borrowed from a financial institution, with an average borrowing of €9,592, according to a study carried out by National Irish Bank.