Brighton University concerned over student payday loans

An increasing number of students have been using payday loans to supplement their income, according to a university in Sussex.

The University of Brighton's student services said a poll of students found 6% are currently accessing the loans.

Staff believe the small amounts on offer encourages students to keep taking loans out.

Helen Abrahams, from the university, said: "We know they are accessing payday loans for different reasons."

She said said the usual amount a student will ask for is £100.

"Once you get into the cycle of a positive experience of paying it back in a couple of weeks time - so you're not experiencing that high interest rate - you are then more inclined to take another loan out.

"I think that's when the problem really starts."

She said students who are facing hardship need to be assessed sooner for additional funding.

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