Cost of university? That’ll be £54,000
Students embarking on a three year university degree course now face a total cost of over £54,000 (excluding student loans), according to new research from the Santander 1l2l3 Student Current Account. This is the equivalent of more than £18,000 every year.
Tuition fees remain the biggest annual outlay, costing £8,601 per year for the average student who started university in the academic year 2014/15. In addition, the average university student outlays a further £9,512 per year on all other living expenses.
The research found that students studying in Cambridge spend the most, an average of £10,778 per year on general living expenses, which doesn’t include tuition fees. In contrast, students studying in Cardiff spend around 29 per cent less on their general living expenses, currently averaging £7,649 per year.
The study coincides with the launch of Santander’s new mobile banking service “SmartBank” which helps customers keep track of their everyday finances and spending. Aimed primarily at students, but available to all Santander’s customers, SmartBank provides a comprehensive, clear and easy to understand summary of their current financial situation. It is available on both Android and i-Phones, and is perfect for students about to go to university and manage their money for the first time.
Steve Pateman, Head of UK Banking at Santander, said: “Going to university is not cheap, especially for those studying in major cities, so students need to have a firm grasp of budgeting in order to make their money stretch as far as possible. As the cost of living increases students should make the most of student discounts and offers. Budgeting tools such as SmartBank will help students to make the most of their money, and Santander’s new 1l2l3 Student Current Account offers savings of over £700 on train fares with a free four year 16-25 Railcard.”
Aside from tuition fees, accommodation is the biggest expense, costing the average UK student £4,169 per year, up from £3,882 in 2013. Food (£1,302), travel (£943) and socialising (£733) are the next largest outgoings, all seeing an increase from 2013.
On an annual basis, students enrolled in Humanities and Social Sciences courses tend to spend the most, with annual living costs averaging £9,997. Those studying STEM subjects spend around a fifth (16 per cent) less, with yearly living costs for these students averaging £8,352.
The 1|2|3 Student Current Account offers an interest-free, fee-free Arranged Overdraft up to a maximum of £1,500 in the first three years of study, £1,800 in year four and up to £2,000 in year five. The Santander 16-25 Railcard, in-credit interest and interest-free Arranged Overdraft show the long term value Santander is offering, which is why more students opened their accounts with Santander than any other bank in 2013.