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Students are spending more and receiving increased levels of financial support, a study has found, which may lead them to seek debt management advice later in life.

The report, compiled by the Institute for Employment Studies, suggests students finish their first year with an average debt of £3,500, with a decline also seen in the amount holding down part-time jobs to supplement their income.

Claire Johnson, Principal Research Fellow at the Institute for Employment Studies and one of the report authors, comments: "Government grants and loans are playing a more important role for students studying under the new financial support system.

Since the previous study, which was carried out in 2004/05, additional levels of student support have been introduced, including tuition fee loans of up to £3,225.

However, the government states that these loans do not have to be repaid until after the student has left university and earns more than £15,000.

Yesterday (April 22nd), Universities UK responded to the Budget, welcoming its emphasis on training and apprenticeships.

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