Students heading off to university this year expect to graduate with debts of almost £13,000, according to a new survey.

Freshers estimate they will have to find £950.32 a month to cover rent, food, books, beer and cigarettes, the 2004 NatWest Student money Matters Survey found.

That means they - or their parents - will have to find £26,000 to cover their expenses for a three-year degree.

The study shows the amount of debt first-year degree students expect to face when they leave university has gone up by £3,800 since 2003.

More than three-quarters of school leavers starting university this year were worried about potential living costs and the prospect of debt.

Almost two-thirds believe they are ill-equipped to manage their finances.

But school leavers looking to start university are realistic about the cost and 84 per are prepared to take a part-time job.

A typical sixth-former believes he or she will have to work 15 hours a week, although 15 per cent believe they will have to work more than 20 hours in order to survive.

It seems, however, that the pressure to earn money can have an impact on studies.

Almost half of those in part-time jobs admitted skipping lectures to turn up for work.

A quarter of students receive regular money from their parents to support them through university but a growing proportion - 34 per cent - do not receive any financial help.

Ann-Marie Blake, head of student and graduate banking at NatWest, said: "The good news for graduates is that this year's average starting salary is up seven per cent to £13,600, which proves that the cost of university is clearly an investment in your future earning potential.

"Going to university is also about gaining life experience and standing on your own two feet, whether it be financially or simply by moving away from home."

Despite rising costs and debts, 41 per cent of recent graduates claim to have gained a good career and independence from their parents. Thirty per cent have bought their own home and 28 per cent have a healthier bank balance.

Ms Blake said: "Although the thought of graduating with debt can seem daunting, a university education gives you a great footing for your future career."

Wednesday August 18, 2004