Student Finance - Can anyone recommend a good book??

JOBEN

Hi
would like to get a book for my son and i to go through, has anyone any recommendations
thanks in advance
Jo:beer:

Lokolo

What exactly for?

Budgetting or wooot?

JOBEN

hi
budgeting, loans, etc
thanks:o

Lokolo

I don't know of any books but I'll give it ago at explaining.

Student Loans

This is all assuming the person has not been to university before.
The student can apply for 2 types of loans. A maintenance loan and a tuition fee loan. The tuition fee loan goes straight to the uni to pay for tuition costs. The student never see's this money.
The maintenance loan goes into the students bank accounts each term. Split into 3. One in Sep/Oct. One in January. One in April (after Easter).
If the students household income is lower than a certain point they can also apply for a student grant. This is not a loan, this is free money which the student does not have to pay back. If the student also gets a maintenance grant they maybe entitled to a bursary from the university.

The interest of the loans are usually very small. They are currently 0%. However, the interest rate changes every year in September. The rate is decided in April when the March's inflation rate has been announced. The rate also, cannot be more than 1% the Base Rate (currently 0.5%).

http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/DG_202

More info there. You also apply there.

You should be applying from late Feb/early March if the student is going to university in September.

Budgeting

This comes in 2 parts. Your DS/DD will either be a spender or a saver. I know students who spend all the money they get, even if they get an overdraft. As soon as the loan comes in, in comes the Xbox + games. Then the bank of Mum and Dad is usually (obviously some parents can't afford to though) there to give a helping hand. Otherwise its dig into the overdraft.

The only difficult thing about budgeting as a student is the loan comes in 3 parts. A lot of students forget about xmas, which is at the very end of the period, so then can't afford to buy presents etc.

http://www.makesenseofcards.com/soacalc.html

Above is a link to a good budget form. Fill in for every month, and stick to it.

Hints and Tips

- Work out how much money the student will need for the year. A lot of city universities have accommodation which is more than the loan.
- Get a job. Most places the first year is a bit easier than the 2nd/3rd/4th. Ideal time to get to know other people and earn some money for a tough final year (moneywise!). The student should try and get a job in the summer too!


Hope that helps a bit.

JOBEN

Hi LokolA
Thank you so much for this post
Jo:beer: