As a new survey reveals how students in York will pump nearly £70 million into the economy during the academic year. Gavin Aitchison looks at their personal financial struggle.

UNIVERSITY days are supposed to be the best of your life.

But for today's students, it is not long before the celebrations turn to dread - and the congratulations cards are replaced by a litter of repayment demands.

An alternative annual university league table, the RBS Student Living Index, revealed the average York student spends approximately £178 a week on rent and day-to-day living costs.

That means York students spend a staggering £66 million every year on rent and living costs.

The city ranked 17th in a list of the 24 university cities, topped by London, with St Andrew's, Prince William's former university city, as the cheapest.

Another survey put the average graduate debt at £13,501, and the Student Loans Company says debt has increased by eight times in the last nine years, reaching £13 billion in 2004.

Ian Sewell, 23, graduated with a 2.1 in archaeology from the University of York last summer, and said debt has been a major burden for him and his girlfriend, Alice Young.

"We feel like we are missing out on the housing market at the moment," said Ian.

"We are very keen on getting in on the market, but the fact that between us we have £30,000 debt is cutting us off. It's not necessarily a financial barrier for banks, but it's a psychological barrier."

Ian said he recognises higher education is not easy to fund, but he says the proposed top-up fees are not the answer. "They would seriously discourage me from going to university now," he said.

He said prospective students should think long and hard before embarking on an expensive course. "My advice would be to go to university, but only if it's something you really want. Don't go just as a stop gap, because it just costs too much."

York College student Luke Beddows, 17, plans to start a journalism course next year, but said leaving university with massive debts is a real fear. "It's daunting wondering how to pay for it when you get into the debt," said Luke, of Acomb, York. "It's a worrying prospect being thousands of pounds in debt and having to pay it off."

For many students, much of the problem stems from making the wrong decisions about managing their finances.

Jason Clarke, of the Halifax bank, said it was important students took time to find the right option for them, and to work out a budget.

"Before you go away to your chosen university, sit down and think about what your expenses are going to be. Speak to the university and the housing officer, and find out what the rents are going to be.

"You are going to have limited finances, and the better you can manage them the better you will do."

Mr Clarke said students should not just rush into the first option they see. "All the banks have offers," he said. "Have a look at and see what's right for you."

While most students suffer from debts of some sort, others are more fortunate.

Michael Brothwell has just graduated from the University of York with a first-class honours degree in history. He took out a £9,000 student loan, but said he is not too worried about repaying it.

"I will just work at home to pay it off," he said. "I worked while at university, and if you need money, you just work. Because I did history, and didn't have many hours of classes, it was easy for me to get work, and I did about 25 hours work a week."

But Micky Armstrong, president of the university's students' union said having to work can have a negative impact.

He said more than half of lower-income students have to work, and nearly half of them feel it adversely affects their studies.

Updated: 09:02 Monday, August 01, 2005