Financial issues affecting students in universities and colleges

Live Well Diary Team

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financial issues affecting students
There are many financial issues affecting students, and in the job market today, obtaining a college or university education becomes crucial for those aspiring to succeed.

Numerous students encounter challenges due to the increasing expenses associated with pursuing education at the college and university levels.

As a student, a concern might be the cost of pursuing university or college education. Finances can often be limited, whether for outings with friends, purchasing textbooks or investing in a laptop to fulfil your academic requirements.

This article describes how students can handle their financial situation up until graduation.

First, here are some common issues affecting students:

Taking on too much debt is one of the financial issues affecting students.

Students often take out student loans to cover tuition It is helpful in the short term but can have long-term consequences if too much money is involved and paid off slowly.

They might struggle to pay back student loans while still in school — and the interest on these loans starts accruing immediately (as opposed to other types of debt).

If no jobs are lined up after graduation, this can strain finances and make life more challenging than needed.

financial issues affecting students

Paying for expenses

The cost of attendance is the yearly cost of attending college or university. These include:

  • tuition and fees
  • dormitory or accommodation fees
  • books and school supplies
  • transportation
  • personal expenses

Students who need more financial aid through loans or grants may have to pay these expenses out of pocket, which can be difficult if they are not working during the school year or if the student’s family only has a little money for these.

No Emergency Funds

Another financial issue affecting students is the lack of emergency funds. Students without emergency funds often take out credit cards. This can result in long-term debt that is around for years after graduation.

Lack of money can easily lead to feelings of failure.

While some have been lucky enough to experience financial stability, others haven’t. There are feelings of failure and inadequacy, which can be exacerbated by trying to balance school, work and instances even a family.

Financial concerns and poor academic performance are strongly linked.

Worrying about money and struggling in school often go together. When students have concerns, it becomes challenging to focus on academics.

The stress caused by problems can contribute to anxiety and can cause depression, which can hinder academic performance.

Studies show that students dealing with challenges are more likely to consider dropping out of college or university. Those who leave before finishing their degree discover that finding a well-paying job to cover student loans without accumulating more debt is quite a challenge.

financial issues affecting students


Stress is a huge problem for college students, which can impair their ability to get an education.

Experiencing stress may result in conditions such as depression and anxiety, ultimately impeding their capacity to actively participate in academic pursuits.

Stress affects eating habits and sleep patterns, leading to social problems. Money problems can cause anxiety because of the pressure to pay for rent, food, tuition and transportation.

When lacking funds, it is common to experience a sense of being overwhelmed by the situation and worry that they cannot complete their education without assistance from others.

Not caring about school.

When experiencing stress, losing interest in studies or grades is not uncommon. They may also lose motivation to succeed in school.


Students encounter pressures, ranging from pursuing high grades and job prospects to meeting deadlines, coping with the pressure of assignments and exams and juggling financial obligations. Juggling these various pressures simultaneously can be quite challenging for students.

Loss of sleep

Insufficient sleep can lead to poor school performance, and students are already under much pressure.

Lack of sleep causes memory loss. The brain’s hippocampus loses its ability to encode new memories because of insufficient sleep.

This can impact homework assignments and tests if you cannot recall details from lectures or readings.

In addition to these effects on academics and memory function, not getting enough shut-eye has also been linked with weight gain. This may seem like an obvious connection, but several explanations exist for this. When we’re tired, we tend not only to eat more but also crave sugar/sweet foods, which leads us down a slippery slope towards obesity.

Loneliness and social problems

Loneliness and social problems are common among students who are struggling with money.

Students struggling with money can experience isolation. The isolated feeling may be compounded by students being away from home and family for the first time and finding themselves in new situations. For example, if students cannot afford accommodation for themselves or their families, they may want to move back home with their parents but feel unable to do so.

Students with no money to spend on social activities may also find making friends or forming relationships challenging. Some studies show that people experiencing financial hardship tend to have fewer friends than those not struggling financially.

Sometimes, having financial problems can cause people to stop spending time with their friends and family to save money. Social interactions can help us cope with stress, so it’s essential not to neglect your relationships.

Managing financial issues affecting students

Consider grants and scholarships targeted to those facing financial hardship.

If a student is facing financial hardship, many scholarships and grants are available.

A school’s financial aid office can give more information on these programs and how to apply.

Some other sources of free money include:

  • Private scholarships award funds based on academic merit or other criteria (like being a minority). These awards are typically quite large and are not tied to the amount of debt you have after graduating from college.
  • Grants, fellowships and loans specifically geared towards students with disabilities

Creating a budget

Set up or create a budget, even if one is a student. Money management is important so that there are enough things that are needed.

Here are some budgeting tips when studying in college or university:

1. List everything that goes into monthly expenses, including rent/mortgage, utilities and food.

2. Add up how much money is needed each month.

3. Look at income from part-time jobs and decide how much of it should go towards paying off debt and how much should go towards living expenses (food, cost of books & transportation).

4. Figure out how much money is left after paying expenses like accommodation, books and supplies, transport, groceries and food.

5. Figure out how much to pay for tuition and fees.

Having roommates

Living with roommates can help save money. Having roommates will also help split costs like utilities, groceries, and rent. This can significantly help make ends meet as a college student.


Using credit cards responsibly.

First off, use credit cards responsibly. Credit cards can come in handy when avoiding the hassle of cash, as they help keep track of expenses.

Many students turn to credit cards when they need cash. A tip for managing credit card debt is not to make more than one monthly purchase on a credit card unless necessary. And another tip is to pay off the credit card balance monthly before interest starts accruing.

Get an internship or part-time job.

Getting an internship or part-time job is a suitable way to pay for school.
Find a job that gives a flexible schedule so that it doesn’t take away from studying or social life too much.

Many companies hire students who are looking for work during breaks. Look for chances to secure employment during the summer season. The summer months are when classes are not in session so that it doesn’t interfere with class time or exams as much as possible. Consider taking advantage of this opportunity, even if the job only lasts a few hours a week.


Having enough money for university or college makes life so much easier. Students can focus on school work, be social, enjoy time and be productive.

On the whole, studies must still be a priority. It is okay to borrow money if needed, but remember that borrowing is only one possible solution.

Be sure to look into all available avenues of financial aid and decide with parents and counsellors which option seems right. This can be complex, so take time with these decisions.

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