Thousands of struggling Scottish students relying on payday loans

According to the Unite Students Insight Report: Finance, the number of Scottish students who are using the controversial loans, that can charge APR rates of up to 1,500 per cent, is almost double the UK average.

The report’s findings are based on a new survey conducted by the National Union of Students of 8,500 UK students and applicants.

The Unite report also reveals that more than 10,000 of those planning to start university in September are set to use payday loans as well.

The report also showed a 12 per cent annual rise in the number of students who feel they do not have enough money to cover their living costs. The increase now puts around 633,500 undergraduate students in this category, this is compared to 968,000 who say they do have enough to support themselves.

However, about 563,000 undergraduates said they have had to take on more debt than they expected, up by seven per cent in a year.

Jenny Shaw, head of higher education engagement and student services with housing provider Unite, which backs the report, said: “It is hard to imagine how taking out a payday loan is the right choice for any student looking to get their finances back on track.

“If a student is struggling financially there are a wide range of options and support services available. Universities and some students’ unions have student finance advisers who offer an excellent service.

“It’s worrying to see a greater proportion of applicants believe payday lenders are the way forward. We can only hope that expectation doesn’t turn into a reality.”