My cheeks flushed as I attempted to pay at Starbucks this morning, a similar shade of red to the growing minus number in my bank account. I didn’t need the coffee to wake me up as my brain was already buzzing just thinking about my student debt. Crunching the numbers is well beyond my mental arithmetic capabilities, and I’m terrified.
I’ve recently graduated from the University of Bristol and after studying English literature for three years the only words I seem to be using are “sorry” and “declined … again?” Unfortunately, I can’t use another card because I don’t have one — I’m 21 and I haven’t got a job.
I have absolutely no idea how I’m going to pay back the many thousands I owe after my degree. According to data obtained by BBC News, once I hit £50,000, I join almost 1.8 million other students with at least that level of crippling debt.
• Freshers will be paying back student debt in their fifties
For most people my age, paying off student loans has become a huge worry. It’s been this way for a while. In the lecture hall I’d hear people talking about looking for cheaper accommodation further away from university or skipping social events to save money. Even so, as we approached finals, we were still dreaming about post-university travel plans. The Australian outback, a road trip across America, interrailing in Europe — we all fantasised that we would save up for six months and head off.
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Then post-exams reality hit. The average university debt is £44,940, but the Student Loans Company has revealed that more than 61,000 people have balances of more than £100,000. The highest UK student debt has hit £252,000. My friends and I have swapped those travel dreams for constant talk of chasing internships or any job opportunity.
For us, these eye-watering costs make getting a first this month more important than ever. A better grade significantly increases our chances of being hired by a higher-paying company, which makes us more likely to be able to pay back our debt sooner. Friends who did science degrees have a shot at getting a research grant, which is a godsend because of the funding provided. The Royal Society, for example, offers grants to support scientists pursuing discovery-led research. Yet like most scholarships, they aren’t a golden ticket. They’re extremely competitive and can be a commitment of up to eight years. “If I flunk my exams it will cost me £10,000,” one friend said, only sort of joking — his scholarship depends on it.
• I’m a graduate. Will I ever get a job?
In my case, with an English degree, a master’s would just put me into even more debt. I’ve been looking into journalism courses, which can cost from £11,930 to £24,440 a year. Asking my parents to cough that up would be met with horror.
Going down the entry-level job route is tough too: some of my friends have applied for more than 100 jobs with no success. When asked what I’ll be doing after university, I answer, “Moving home.”
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It’s no wonder that Klarna, a flexible payment system, has become a lifesaver. I use it more than ever and I actually worry about giving my library books back, because God forbid any extra charges! Although sometimes my friends and I think, “What’s another tenner on top of £20,000 in debt?” “Let’s stay for another drink,” we giggle at the pub before waking up the next morning filled with anxiety at the sight of our bank accounts. Still, I worry that even if I had more cautious spending habits, it wouldn’t be enough to combat the interest rates applied to student loans. It’s no surprise that students are discouraged from continuing their studies, or even starting them at all.
