Students warned about effects of credit crunch

University students have been warned that they may have to seek alternative forms of funding due to the impact of the economic slowdown on their parents.

The students' union, NUS, revealed that although no effects of the credit crisis have appeared to hit the student population, parents' income may become affected.

Traditionally cash-strapped students are eligible to receive loans in order to pay for living expenses and tuition fees. However, the amount received is calculated according to household income.

With the effects of the credit crisis increasing mortgage interest, students may find that less of their parental income than before is available to them.

David Malcolm, Head of Social Policy at NUS, said: 'If parents are in a situation where they are suddenly paying more on their mortgage, which wouldn't be taken into account when assessing what student support there is, more students will find that their parents won't be able to support them.'

Mr Malcom suggested that this will lead to students relying on part-time work and hardship grants.

Uniaid, a charity formed to help students break down financial problems that are preventing them from studying, maintains that students have not yet been affected by the credit crisis.