Financial Support

Introduction

If you plan to go to university one of the key areas you need to look at is finance. It's fair to say that most students now leave university owing some money - in the form of a student loan, an overdraft or other debts. It is not uncommon for this to be about £12,000 and this figure is likely to increase over the next few years.

The use of the word 'debt' is becoming increasingly linked to students. This may sound a bit scary, but it is important to recognise that many people owe money to banks, building societies, etc. via loans, credit cards, mortgages etc. These 'debts' only become a problem when they are unmanageable or when you spend in an irresponsible way.

It is important that you stay in control of your finances during your time at university by planning, budgeting and working (if possible). Remember to be realistic about what you need and what you can afford.

However, it is worth remembering that most students say that going to university has benefited them more through better employability and salary than if they had not gone at all. Don't let the thought of getting into debt put you off - by planning, you can handle it!

Before you get to University:

• Make sure you have your finances sorted ready for the start of your course. If you are applying to university late make sure you can manage on a limited income, in the short term. Ideally (even if you are not sure if you would go to university) apply to your LEA or funding body (e.g. NHS, Sponsorship) as soon as possible. LEA applications can be made around about the April before you start
• Check out local funds that you may be able to apply to, like Opportunity Bursaries
• If you have a disability, apply for DSA (Disabled Students Allowance) from your LEA or funding body from the April before you start
• Spend time getting your forms completed; enclose ALL the documents asked for. If possible, take it to the LEA offices and get a receipt. If you experience problems with your application talk to the LEA or ask your parents to
• The LEA will assess how much student loan you will receive, the amount (if any) of fees you will need to pay and the contribution your parents will need to make (if appropriate). You can get a rough idea of these figures from the DFES website and booklet (see links)
• Check out your living costs:
  • Accommodation - studying at home may reduce costs; some halls may include food; privately rented accommodation rents may be inflated
  • Travel - the closer you live to university the cheaper your travel costs should be, but don't forget to think about of travel to home
  • Food - try and have a trial run on what you will spend on food before you go shopping (look at food retailer websites for costs - compare some major names with supermarket own brand products)
  • Leisure - drinks, food, cinema, and club can add up! Over a couple of nights you may have spent your budget for the week
  • Course costs - check to see what the actual costs will be before you start the course. Buy only the essentials and remember to see what is available from the library or from previous students who may be selling old textbooks, etc.
  • Bank Accounts - look at what is being offered. Sometimes the short term 'perks' do not outweigh a low interest rate, especially if you think you are going to need an overdraft
  • Other costs: TV licence, mobile phones, haircuts, and clothes
  • Childcare - LEAs and Funding bodies will normally assist with childcare costs, but it will not cover everything. Make an early application (September / October) to the university's Access to Learning Funds (Hardship Funds)

On your course

• When you first start university you may find the whole experience overwhelming - new friends, new influences, new temptations... This is where you may find you spend a great deal of money in a relatively short period of time without realising it. Remember your budget and that there are another 3-4 months before you get your loan again!
• Get a job! For most students your expenditure will exceed your income so it's important you start as soon as possible to supplement the income from your Student Loan. Aim to do at least 1 day per week of work, more in the holiday periods and less in your final year of study
• Use an overdraft facility, but be careful not to abuse it! Sometimes you will need to use your overdraft facility to tide you over until your next loan instalment arrives. Always stay within your limit and be careful not to go over when interest is added. Stay in contact with your bank
• Don't avoid bills, debts, credit card statements, letters, etc. Talk to people that you owe money to. Get advice from the NUS, CAB or university welfare or student services. They can normally give you help and support with these
• If things go wrong...Universities will normally have a small fund to help students out of problems they may have gotten into or they may be able to provide advice and support. However, any fund a university may have will be popular, limited and available for students in real emergencies. Apply early!

Moving on

• After graduation you may find that you have no job and the money you owe to people is spread over several debts:
  • Student Loans Company
  • Bank Account Overdraft
  • Credit and Store Cards
  • Utility Bills (Gas, Water, Electricity)
  • The University
• Hopefully if you have budgeted well you've kept your debts to just a couple of the above. If not you may want to seek assistance from the local CAB - at least until you start to get a regular income
• Re-budget based on your new income and try to keep your outgoings low. Prioritise your debts - remember the student loans company will not need paying until you are working and earning a reasonable salary. Meet minimum payments on all your bills - pay off more at the end of each month if you can
• What ever you do, don't let your money worries get the better of you. Speak to support agencies like CAB, National Debt line. Remember always stay in contact with people you owe money to - don't avoid it!

Top of page