More than a quarter of new students – around 130,000 in all - will be living with their parents when they start university in September.

This dramatic reversal of the dash to get away from home that characterised previous generations is explained by financial problems: living at home rent-free is the only way many young people can afford to go to university at all, according to research by LloydsTSB involving 1,000 young people who intend to start their studies this autumn.

Almost two-thirds said they didn’t know how they would be able to manage if costs continued to increase. A surprising 38% said the cost of attending university would soon outweigh the benefits.

But forgoing the freedom of life on campus is not easy: 62% of those staying at home said they would prefer not to if they had any choice.

For those who can afford to get away, the main motivations are to be closer to their university (74%), to gain independence (66%) and the social life (56%).  One in five (22%) admit that they are itching to spread their wings.

Taking a job to help make ends meet is also becoming the norm for a substantial minority of English students: a quarter said they intended to get a job during term time, and a third said they would take more than one job during the summer vacation to build up their capital. Just 5% will be expecting their parents to pay for their studies.

Almost two-thirds (63%) said that they had applied for the Government's financial package for students, with just 6% saying they wouldn't be applying for any financial support.

More than a quarter of new students say they are worried about managing their finances and would like further guidance. Almost one in four (23%) said they hadn't received any help at all with their financial planning.

"Going to university isn't just about getting good grades, it also has to make financial sense. For many, living at home or taking on a job is a sensible option to help cut down the cost of their studies,” says Catherine McGrath, director of current accounts, Lloyds TSB.

"However, university is also a great time to spread your wings and get a little life experience. By making the time now for some financial planning and careful budgeting, cash-strapped students should be able to enjoy further education without worrying unduly about making ends meet."

Details about Lloyds TSB student accounts can be obtained at any branch, by phone on 0845 3 000 000 or online at www.lloydstsb.com/student.

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