Almost a third of young people starting university this year intend to live with their parents to stop their debt spiraling out of control.

A report by Lloyds TSB has revealed that 31 percent said if they didn't live at home, it would be too expensive for them to go to university. More than a quarter are worried about managing their money while studying and a similar number said a part time job is essential to pay their way.

The number intending on living at home is up from just 22 percent last year. However, of those moving out, 63 percent claimed the independence they will get is worth the extra financial burden and more than a quarter want to be close to campus. Just one in ten has no concerns about the debt they will amass.

The survey also revealed managing student debt is a priority for all students with seven out of ten planning to work during term time. A tenth of those questioned admitted they plan to rely on loans and an overdraft to fund university life.

Caroline Brady of Lloyds TSB said: “Students face higher levels of debt than ever before and whilst it’s essential that they find ways to keep costs to a minimum it is also important that students think carefully about all the options.

“Savvy budgeting skills can really help students to start off on the right foot while they get to grips with managing their own money. A smart approach is to plan ahead and seek guidance now on how to manage your finances to avoid getting into trouble later on.”

More than half of respondents have already applied for the Government’s student finance package, with 46 percent applying for a loan to cover tuition fees. A further two fifths said they have applied for a maintenance loan to help with living costs and 20 per cent have applied for a bursary from their chosen university.