Second-year studies reveal the facts of financial life

DEBT is now a way of life for students, with four out of five ending the year in the red.

The average amount owed is pounds 1,672 - 22 per cent more than a year ago, according to a survey by Barclays Bank. Graduates finish their studies owing an average of pounds 1,900.

The survey was conducted among 3,000 students, and showed that students are relying more and more on the Student Loan Scheme, which was introduced in 1990. And parents are having to hand over more cash to keep their student offspring solvent.

The Independent/Barclays Student Track has been monitoring five students who have just finished their second year of study. One has dropped out, one is in debt, but the other three - with much help from their parents - have survived financially intact.