Students should take out content insurance, expert says

Britain’s students were strongly advised today to take out contents insurance on their possessions.

Cooper Healey, who runs Manchester Student Homes – a provider of private sector student accommodation – said that the insurance was important as protection against possible theft.

“There is a chance that you will become a victim of crime,” he said.

Mr Healey added, however, that there was “safety in numbers” in halls of residence “to some extent.

“The fact that [students] are often surrounded by CCTV which acts as a deterrent,” Mr Healey said. “Often they have 24-hour staff on site or otherwise they have a security patrol and security numbers so that does make parents feel very safe about where their child is going to be living.”

There is an increasingly unfavourable financial climate for students to take out perceived “non-essential” cover, however.

Not only are student loans on the rise – which have hit £20,000 for some university entrants this year – but rent is increasing, as well.

In a recent survey by the National Union of Students (NUS), rent was found to have increased by £19 per week on average in the last three years.

Tags: safety in numbers, CCTV, sector, fact, education, victim of crime, Manchester Student Homes, student loans

Early 30s in most debt

People in their early 30s, known as the Friends generation, borrow more money than any other age group.

New research shows that they have the highest borrowing, including mortgages, and are more likely than other generations to miss repayments.

A study, carried out by Alliance and Leicester, shows that the Friends generation, named after the popular US sitcom, have an average unsecured debt of around £5,863.

That stands at 29 per cent above the national average and the fact that they often miss payments means that the situation is getting worse.

Alliance and Leicester does point out that the age of the Friends generation does not help their cause as many are now seriously making moves to settle down.

This means many are buying their first home, with 63 per cent currently owning a property.

“The early 30s are a transitional age where careers are taking off and before family responsibilities kick in,” explained Chris Rhodes from the bank.

“Many are buying their first homes at this point, but are also enjoying rapidly rising salaries and are keen to enjoy life to the full.”

Things look much better for the so-called Club 18-30s generation, with fewer people in this age range having consumer debt.

It is not all rosy however, with student loans having a major affect on this generation’s finances.

“The picture for the under-30s is dominated by student loans,” continued Mr Rhodes. “A hangover of student debt is constraining their appetite for other borrowing and delaying their ability to get on the housing ladder.”

Tags: age, affect, appetite, cause, chris rhodes, student loans, point, consumer debt

Student & Graduate Loans

Student and graduate loans are designed to help pay for people to get through University now that the grant system has disappeared. These days it’s estimated that a third of all eighteen year olds enter further education. When the full maintenance grant system was in place only a tenth did so. Clearly this has created a huge demand for loans. Read more

Tags: graduate loans, Business Finance, home, Loans, taken out, bank account, new academic year, student loans