How smart students are mitigating student debt without impacting their studies

Students in higher education are certainly no strangers to financial woes, with the average student loans debt in the UK at £35,000 – nearly double compared with American graduates.

Last year, the Student Loans Company revealed the largest amassed debt of a single student in England to be an astonishing £189,700. Though they were quick to point out that this was an outlying case, many other graduates quickly chimed in on Reddit and other social media platforms to point to their own debts around the £100,000 mark, many of whom had taken post-graduate and five-year medicine degrees.

Since 2012, annual costs of tuition fees tripled to £9000, and this combined with the rising cost of living has meant students must look for new ways to be financially self-sufficient as they see themselves through university.

The pressures of debt

A recent report from the Higher Education Policy Institution found that those who graduated in 2020 had taken out an average of £45,060 in loans. This is no small sum, and case studies from the same report found students citing this as a major contributor to their anxiety, worry and dread.

While mounting debts are no doubt a detriment to mental wellbeing, the fear of accruing more debt also works to dissuade many able students from going on to pursue post-graduate studies.

The Student Money Survey 2021 from Save the Student found that 76% of students were struggling to get by financially, with 34% reporting a negative impact on their grades because of this. 

According to the House of Commons Library, over 1.3 million students take up a student loan every year, so it comes as no surprise that The National Union of Students identified a growing need amongst under-graduates to work part-time in order to reduce financial hardship, and close the gap between their income, and the cost-of-living expenses and tuition fees.

The flexible working revolution

While many students simply must take on part-time work to make ends meet, and avoid accruing further debt while at university, others are rightfully concerned about the effects a job may have on their studies.

A part-time job with rigid shift hours will naturally limit the amount of time available for academic study. Times of increased academic pressure, such as when an assignment or important exam is due, can leave students struggling to cope with the demands of work and their studies, and can quickly lead to burn out.

It is for this reason that an increased number of students are turning to more viable forms of work that allow them a greater degree of flexibility while they pursue their studies. Technology has made it easier through digital employment marketplaces for students to find new opportunities for flexible and freelance work that not only supplement their incomes and keeps the pressures of debt at bay, but actively contributes to their studies and future careers.

A student workforce

Online platforms that help students connect with clients and businesses, and secure project-based or freelance work offer an entirely new way for students to mitigate the financial burdens of university.

Students represent a huge pool of untapped talent with the most up-to-date knowledge in their respective industries, whether that is marketing, design, or a whole host of other creative and technical skills. Rather than become a drain on time or a detriment to their studies, these kind of job opportunities allow students to take on work that actively enriches their academic pursuits by providing real-world tasks in their desired industries, while giving them the flexibility to choose when and how they work so they can effectively prioritise their academic schedules.

Similarly, students also represent the first generation of true digital natives, having grown up with social media and within online spaces. As more brands begin to realise the value of utilising the online followings of students in their peer-to-peer marketing strategies, an entirely new way for undergraduates to make money while they study has emerged. Students can effectively monetise the time they spend on social media, creating content and leveraging their digital platforms as nano-influencers to gain financial stability in a way that is both enjoyable and easy to fit in around study commitments.

A competitive advantage

The current job market is incredibly competitive, with a study from Indeed’s Hiring Lab showing graduate job listings to be down 23% from 2019, and internships down 29%. This, combined with the substantial debt of pursuing a university degree means students are becoming far cannier when it comes to the kinds of work they are doing.

Taking full advantage of the flexible job opportunities available to them means students are not only giving themselves that competitive edge with future employers, building a portfolio of work and work experience before they even graduate, but are also securing their financial futures by relieving the burden of tuition fees and student loans.