Student Debt, Painful.

reesla

You should be able to pay your tution fees in instalments rather than just a lump sum of £1200.

I work in a University and this is what we do. When I went to Uni (a different one to the one I work at!) I paid in instalments. They didn't add interest, but did coincide with the loan instalments!

If you pay in instalments you should have some of your loan left over to put towards your debts, or as I did in an ISA. I was able to work during term time as well, so I budgeted my monthly outgoings to suit my incomings. unfortunately it all went a bit wrong since I met the OH.....

jesster_2

and don't forget that if you've taken all your loans etc and are struggling for money, your welfare office can give out hardship grants - that you don't have to repay. I had one at uni, and they help A LOT, largely because if you're at a uni where there are loads of rich people, as I was, not many people claim it so there's a fair amount left in the pot.

Kruger

jesster wrote:

and don't forget that if you've taken all your loans etc and are struggling for money, your welfare office can give out hardship grants - that you don't have to repay. I had one at uni, and they help A LOT, largely because if you're at a uni where there are loads of rich people, as I was, not many people claim it so there's a fair amount left in the pot.

Agree with the above, I'm at Leeds Uni and the ratio of rich/middle class to those who's LEA pay their fees because of parental income being too low is well over 90% I'm at uni with a lot of people who's parents average earnings are in the £100k + region as company directors for BT, Pepsi, some building companies Mars the list goes on... you get the idea, so I know what it can be like living in a slummy road full of new VW Golfs and Mini coopers with private reg numbers, tans earnt on the piste from xmas hols etc, not that I'm envious or anything, but having that sort of headstart makes things easier as I wouldnt be selling car insurance in my spare time and worrying about moving money from one account to another in time to pay rent and bills.

Sorry rambling......so getting back to the point, I just applied to the Access to Learning fund and got £1500, just needed to provide all bank statements etc for the last 3 months, and best of all its a grant so completely FREE!! Good luck

lynzpower

Also to add, well done for being able to get regular work in Newcastle, I was there for Uni too, all that hard drinking certainly took its toll on my finances.

ONe thing I can offer is Primus 2 phone call carrier, its free, all calls under an hour and a half (landline), are free, evenings & weekends, and guess what, its free! You might want to see if your housemates would accept this ( theyd be mad not to in fairness) and you might save yourself a few quid. 25 a month for phone seems a lot there, if you are only talking about the landline.

badger._2

I can completely see your problem with the mini coopers et al, a quick peak in the student car park, at my accom, and at uni, show's 7. A 12k BMW, just for good measure :eek:

I read the other thread on that Access to Learning fund, but not sure whether to apply, will it be worth the time? I've got the bank statements, and generally don't waste much money, most goes on travelling home/rent/tuition fees.

What are your circumstances Kruger, I mean, to get £1500!

Thanks!

Kruger wrote:

Sorry rambling......so getting back to the point, I just applied to the Access to Learning fund and got £1500, just needed to provide all bank statements etc for the last 3 months, and best of all its a grant so completely FREE!! Good luck

jesster_2

badger. wrote:

I can completely see your problem with the mini coopers et al, a quick peak in the student car park, at my accom, and at uni, show's 7. A 12k BMW, just for good measure :eek:

I read the other thread on that Access to Learning fund, but not sure whether to apply, will it be worth the time? I've got the bank statements, and generally don't waste much money, most goes on travelling home/rent/tuition fees.

What are your circumstances Kruger, I mean, to get £1500!

Thanks!

Are you out of your mind? getting together a few bits of paper and talking to a welfare officer for half an hour, and getting up to £1500? What do you mean 'WILL IT BE WORTH THE TIME'???!!!

And you don't have to be in total trouble to get £1500. I got the same, and some more towards the end of the year when they hadn't exhausted the fund. It's about how much is in the pot, not necessarily what debt you're in. That's because the money is meant to live on, not to pay debts.

Honestly you knobber (meant in the nicest possible way, of course!) what do you mean 'will it be worth the time'?!

My favourite was walking past the 3 Porsche boxters on my way out of my halls. Reedeeculous!

nicola1982_2

badger. wrote:

Hehe, thanks Nicola. Please note that i'm living with probably the richest student in Britain, my perspective of things can get a little warped at times... Is your debt not inclusive of your loan, too?

Hopefully i'm looking, in the long term, to leave university with as little debt as possible. I know it's silly, but if I keep telling myself this, i'll hopefully progress a little. I've got some pretty crazy career plans in my head, most of which require me to hit the ground running so to speak. A placement in my 3rd year so go some way to helping me.

Optimism is lovely.

Oh no, I don't really think about my student loan as the interest charged is less than what I can make from a good tax free savings account. My plan is to put aside money into an ISA once my interest payable debts are repaid and accrue interest until I can just repay the whole balance. I plan on having the non SLC debt repaid in three years and my reward will be buying a house and getting on the property ladder without worrying about credit card debt.

SLC debt should never be more than you can afford as it is earnings based like tax, granted it's a bit of a pain, but it's worth the opportunities you'll be offered upon graduating. So get the best classification you can and remember chances are you'll never get this opportunity again

sarah_elton

Bear in mind too the HSBC overdraft doesn't even start charging interest the minute you graduate. Yes it's a debt, yes you should be aware of that fact and not over-value your wealth, but it's 0% and use it.

Not sure if it's changed since I graduated in 2003, but when I graduated the 0% O/D limit was £1,250. One year later it dropped to £1,000 I think, then last summer to £500, and in June this year it'll drop to £0. I only paid mine back last month, to give me a couple of months leeway to ensure my cash flow over the month through my current account won't mean it drops below £0. I could have paid it back quicker but instead I put the money into interest paying accounts.

Paying back around £1k over three years should be do-able after you graduate so I wouldn't stress too much about that one. As others have said, clear any interest bearing credit cards if you can.

Also, remember that there's no charges so long as you don't go over the agreed limit. The part that's 0% drops off steadily after uni, but the total overdraft limit doesn't. To bad budgeters that's dangerous as the interest doesn't look like much, but it means if you dip over by a few quid you pay the odd few pence interest. Not recommending it but there's no £20 or £50 or whatever charges slapped on.

I was studying Economics and didn't have any concept of a budget at uni at all (and still didn't till about a year ago). You're a million miles ahead of 95% of students so give yourself credit (no pun intended!) where it's due. :beer:

kar

Hiya badger, You haven't done too bad with money in your first year. It actually gets easier after that (or I found anyway). I'm currently in my final year and am trying to save for the deposit on a house with OH. (it helps that he's on an industrial placement and so pays for everything - we have saved my student loan and i'm working one day a week to try to add to it)

At this time of year the only thing you should be worrying about is those dreaded exams in a month or so. Your loan would have come through today (mine did) and so I would pay off the CC's with it making sure you save enough of your OD to live off till the end of the exams. After they are over, work as much as possible (I did 7 days a week for 12 weeks after my first year) and pay off as much as you can.

Next year remember at registration to sign the DD form and that your OD will go up to 1250 (and then 1500 in 3rd year). Then working a little during term time should enable you to stay afloat.

On a side point and a minor rantabout student loans. I have 6 weeks left at uni now until i can work for 14 or so weeks full time. Why do i get the biggest loan installment now??? It so should be split up differently.

badger._2

Yay, thanks! I'm not one of those, (e.g. the mother) who believes student loan debt is a crisis, and needs to be ridden at any cost. Just that when I graduate, financially, I wanna be erm, fine. £0. etc.

To follow the point further, once i've cleared my cards and second overdraft (10.5%), i'll set my overdraft at £800 (limit £1000) to create a £200 emergency fund. The question is, shall I use my mini cash ISA for my savings, or can anyone recommend a high interest savings account, suitable for me.

Thanks!