Press Room

Students Stay put and Think of Tomorrow
(6 October 2006)

The image of the stereotypical student existence - rowdy parties in halls of residence, chaotic rooms and meagre meals - is challenged by new research from NatWest, which reveals that more school leavers than ever are living at home during their university years.

More than one in five (22%) are to live at home with their parents - a jump from 16% last year, according to the 2006 NatWest Student Money Matters survey.

It's a rising trend, as an increasing number of graduates over the last three years admitted their original choice of university was influenced by location. Some 19% of graduates in 2005 picked a university based on location, up from 15% of graduates in 2004 and 14% in 2003.

The biggest worry for students heading for their first experience of university life is that ‘money will be very tight', with 71% expressing concern, and an increasing number choosing to stay at home to save on rent and accommodation costs.

The NatWest survey of 3,133 sixth formers, current students and graduates also reveals that with each passing year, young people are focusing on their career after graduation rather than their student experience.

For the new university students this autumn, the vast majority (79%) are going in order to improve their job prospects. Of the current student population, 71% decided to go to university to enhance their future job prospects.

From the graduates of 2005, 63% felt university was the best way to improve career prospects. In 2004, the figure was 60% and it was lower again in 2003, with only 59% of the graduates then rating university as the best way to improve career prospects.

Mark Worthington, Head of NatWest student and graduate banking, said: "Concern over the cost of going to university could be one of the reasons prompting more young people to study and stay at home with parents rather than move away.

"This, coupled with a greater focus on careers after graduation, is a significant and growing influence on both the location of the university chosen and the course selected.

"It could mean a very different student experience for this generation compared to their parents, for whom student life was, perhaps, about exploring new things and freedom from parental influence."

Though graduate debt is expected to continue to rise, the experience of recent graduates is that they emerge into the working world able to earn independence from their parents quicker than their predecessors. 41% of graduates in 2006 were now independent from their parents compared with only 33% in 2004.

On the other hand, time away at university has for many people had a real impact on their future, with 44% of graduates saying that studying for a degree had given them much more confidence in their abilities and 56% had gained transferable skills for the future. That said, if the trend for ‘stay at home students' continues it may be a less influential experience for future generations.

With more students each year selecting degree courses based on future career aspirations, they might take increasing notice of guidance from universities as to what ‘A' levels to select to be considered for particular courses or institutions.

Notes to Editors:

• Mark Worthington, NatWest Head of Student and Graduate Banking, is available for interview.
• Case studies are also available on request.
• Research carried out by Virtual Surveys Limited in May/ June 2006.
• 1,003 Graduates, 1,071 Students and 1,059 sixth formers were surveyed.

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