Over 70% of students feel hopeless about their finances and nearly 60% feel too hungry or cold to study.
However, just under 80% still feel confident that attending university is worth the cost despite rises in tuition fees, according to new data from Blackbullion’s annual Student Money and Wellbeing Report 2025.
Based on responses from 1,500 students from across the UK, Blackbullion – star of our FinTech 50 ranking – sought to understand students’ thoughts, feelings, and experiences about how their finances have impacted their wellbeing.
What they shared is concerning:
• 77% of students report a negative impact on their mental health due to their finances
• 72% of students feel hopeless about their financial situation
• Almost 70% of students across the UK believe that their financial worries will lead to a lower grade at the end of their degree
• 57% of students have experienced feeling too hungry or cold to study
• 14% of students report self-harming behaviours – nearly double the national average.
The picture doesn’t look much better when we see the financial numbers they’re reporting:
• Each month, students on average feel they are £364.99 short on money
• This gap widens by gender – with female students reporting a shortfall of £493, more than double the shortfall reported by male students (£230)
• Educational background also plays a role, with privately-educated students indicating a monthly gap of £449 – which is £45 more than their state-educated peers
There’s an additional marked difference between age groups – with 22-to-25-year-olds stating a gap of nearly £700.
However, there are some positive signs, with the reported monthly shortfall dropping sharply compared to 2024’s £621.
Blackbullion’s historical data can be used to track a number of trends in students’ finances over the past five years – suggesting that while the situation may look bleak, there are signs of hope on the horizon.
There’s been a fall of nearly 10% of students telling the firm that their finances are negatively impacting their mental health. In 2024, 87% shared that money was causing them worry, compared to this year’s 77%.
Monthly shortfall is almost back down to 2021 levels – indicating that either that increased financial support is having a positive impact or that students are becoming used to the ongoing impact of the cost-of-living crisis.
Location plays a key role. Based on a five-year average, there was a £439.28 shortfall in the most expensive region to live in – the South West. In comparison, the cheapest region – Northern Ireland – had a shortfall of only 67p.
Blackbullion says that something needs to change. Its report is written for Higher Education organisations – including its clients across the UK – and highlights where targeted support for the most vulnerable students is needed, including for those who are trans, with care experience, and have self-harmed.
Vivi Friedgut, CEO and Founder of Blackbullion, said: “We were looking forward to the results of our fifth Student Money and Wellbeing Report. A lot has changed since 2020 and yet it seems the more things change the more they stay the same.
“Finances continue to affect students’ mental wellbeing and while the gap between students’ needs and the support that they receive changes – that there is a significant gap remains static.
“The ongoing pressure on the cost of living has resulted in fewer students able to access familial support and we see commuter students continue to suffer greater deficits than other students.
“There are a myriad of ways to mitigate the worst impact of these deficits and universities are increasing the financial support available in the form of bursaries and grants. We are deeply passionate about scholarships at Blackbullion and are excited to be working with a growing number of iconic companies to provide them. Additional funding can help to transform students’ lives.
“With the cost of living no longer a crisis but a ‘new normal’, we are actively encouraging students to be more proactive and explore how they might take more control of their money. 54% of students we surveyed didn’t have a part-time job or side hustle to supplement their income – and 39% admitted that they didn’t know how to manage their money.
“Some steps can be quick and easy – like setting about a budget, setting up a crowdsourced cashback link, or uploading their CV to their university’s on-campus jobs desk. Others might take some more time, as they work to build revenue streams or learn more about finances.
“And that’s why Blackbullion exists: to help students develop their financial confidence knowledge and skills. We’re here to help with every step of the way – with a free Money Manager app to show when and how they’re spending, a learning platform used across more than 70 campuses across the UK, and a scholarships hub offering thousands of pounds worth of opportunities.”
Lee Elliot Major, Professor of Social Mobility at the University of Exeter, said: “It’s a national scandal that so many students from poorer backgrounds are facing hunger, cold, and crippling financial hardship – harming their progress at university. Without urgent reform, including the reintroduction of maintenance grants, we risk betraying the principle that university should lift students out of poverty – not trap them in it.”