MOUNTING debt and poor living conditions might make potential university students think twice before embarking on a degree course.

But a national survey hailed as 'the definitive study of student living' has found that, despite increased financial pressures, a student life is a happy one.

Interviews were carried out with 1,025 full-time undergraduate and postgraduate students.

The survey, commissioned by student accommodation provider UNITE and conducted by Ipsos MORI, found that despite having to fund their university education 'today's students are happy and more optimistic than ever'.

Only two per cent disagreed with the statement: 'I am happy with my life', despite more agreeing that 'since being at university I am under a lot more stress than before'.

The survey also said: "They overwhelmingly believe going to university is a worthwhile experience and the money they are spending will be a good investment in the future."

And the prospects when students leave? The average starting salary for graduates in 2005 was £21,997, according to Prospect Directory, the annual graduate recruiters' directory.

Jamie Longson, a 23-year-old undergraduate at the University of Bolton, said: "It is definitely an investment in my future, to have a good career. Before, I was in sales and wanted to do better."

The sports science and coaching student added: "I will be in a lot of debt through student loans - £3,000 minimum - and it is worrying. I try not to think about it. It is the biggest cause of stress among students.

"But I do not regret going to university. I am confident I will get a good job at the end of it. Then there is also the social experience. It is a good life."

The survey found that, on average, students owe £5,865 in the early stages of going to university and anticipate leaving with debts of around £10,000. Those figures have risen by 58 per cent and 38 per cent respectively since 2001.

For most, this debt is in the form of a student loan. However, a third of students also have an overdraft and one in seven owe money on a credit card.

But 43 per cent of those interviewed say they are managing their money and paying their bills without difficulty. Compared to five years ago, parents' contribution to rent, food and books has fallen, but this is said to be due to an increasing number of parents helping to pay for tuition fees.

Also, an increasing number of students are working to pay for basic essentials, although four in 10 say that working during term time hits their studies.

Paul Bailey, aged 23, from Whitefield, also a second year sports science undergraduate, said: "Getting a part-time job is a fact of student life now. I know some students who are working all the time and it is affecting their studies."

Jamie, who lives in Stockport, said: "I have been able to do some coaching, which is linked to my degree, to earn a bit of money. The important thing is to strike a balance.

"I don't get financial help from my parents and I have to manage my money. Some students just blow it, but I know I can't."

Increasing debt means that the two are forced to live at home.

Paul said: "I think more and more students will be forced to go to university closer to their homes, which takes away from what the university experience used to be."

Will Smith, the university's student financial adviser, said: "The university understands that more students need part-time jobs. We have links with local businesses to help students get paid work.

"Some students are forced to drop out because of increasing debt and costs. We have a range of options open to students to stop this happening, such as studying part-time to deferring or suspending the course for a year."

But although working out of necessity was rated as one of the worst aspects of university life in the survey, it was thought to be a maturing experience.

"Students today are forced to manage their money more responsibly," said Mr Smith.

The survey also found that the university population last year continues to be dominated by students from a white collar background.

The proportion has risen to 84 per cent, while the proportion from working class backgrounds has fallen to 17 per cent.

Dr Peter Marsh, the university's pro-vice chancellor said: "There are concerns in the press that the number coming from the lower social classes will fall.

"But our applications have increased and we are hoping to maintain the intake."