Student loans increasing debt culture
According to some experts many of today's students in the UK are developing an increasingly accepting attitude towards debt, which is often the result of having to take on student loans. With student loans many students get into the habit of having to borrow money in order to get what they want – a habit and attitude that has perhaps led to increasing overall consumer debt levels over recent years in the UK. The debt charity Credit Action claims that debt has become a way of life for students that have to start their adult lives with student loans hanging over them.
Easy access to loans for students, as well as easier access to student credit cards, has made it easier for students to get credit in order to purchase things that they would otherwise have to try and save up for. Government student loans were described by Credit Action officials as 'government endorsed debt on a massive scale'. Officials state that many students will find themselves on a slippery slope unless they adopt a healthier attitude towards debt.
Campaigners and debt charities are concerned about the attitude that many of today's students are adopting when it comes to getting into debt, with many finding themselves in considerable levels of debt before they have even graduated from college or university. One official from Credit Action stated that access to student loans and finance was too easy, and this was encouraging those in full time education to turn to borrowing for all of their needs, including non essential spending and purchases.
However, some people believe that some forms of student borrowing, such as a low credit limit credit card, could be useful, as it enables the student to enjoy financial flexibility to some degree, but more importantly allows the student to build a rapport with a bank ready for the future, and helps to kick start the student’s credit rating.
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