Student debt - what you should really know

needstoknow

To dora, i am a student and i can tell you why some people get into debt, because you 18 and some "nice bank manager" goes heres a grand, c u later! and because you have never had more than 50 quid at any one time you go nuts and spend it all in the first few weeks whilst making new friends and living the "life" then of course your money runs out and you get a credit card from the o so friendly bank manager and so on! the fact is money management skills come with time and the student life can be a harsh reality for some people.

Bennifred

needstoknow wrote:

To dora, i am a student and i can tell you why some people get into debt, because you 18 and some "nice bank manager" goes heres a grand, c u later! and because you have never had more than 50 quid at any one time you go nuts and spend it all in the first few weeks whilst making new friends and living the "life" then of course your money runs out and you get a credit card from the o so friendly bank manager and so on! the fact is money management skills come with time and the student life can be a harsh reality for some people.

Too true, needstoknow! Even when they are told in advance that this is what can happen and how to avoid it......aaaarrrggghh!! (I'm talking about DS, not me, by the way). They do say you learn from your own mistakes. My question is - WHEN?:mad:

Savvy_Sue

Dora_the_Explorer wrote:

Can any student tell me why they have to get into debt? If they work full time during the holidays and part time during term time surely this generates enough income to live on throughout the year? I studied as a mature student, with no grants, worked at the same time, paid my way and incurred no debts whatsoever.

Even without needstoknow's depressing scenario, I guess not everyone is able to find a full-time job within commuting distance of where they live during holidays. Nor is it possible for all students to work part-time during term-time. Medics and nurses, for example, certainly can't hold down a part-time job with regular hours - the ones I know is forever being sent to distant hospitals on irregular shift patterns as part of their course!

DS1 is finding it quite easy to live within his means, however. He says it helps that he doesn't drink (if there's an alcoholic drink he likes, he's yet to find it!) or go clubbing (doesn't like the racket!) :rotfl:

elisebutt65

Dora_the_Explorer wrote:

Can any student tell me why they have to get into debt? If they work full time during the holidays and part time during term time surely this generates enough income to live on throughout the year? I studied as a mature student, with no grants, worked at the same time, paid my way and incurred no debts whatsoever.

Some of us can't work - I've got 2 kids under 11 and during the summer hols, take them away and have to entertain them etc. If I was to work, all the mioney would be swallowed up in child care. If I don't work then at least I can get housing benefit and IS during the hols.

You might say get working Tax Credits, but then I can't get the childcare grant which covers 85% of childcare, not the 80% that WTC covers. That 5% is a lot!! And TBH a lot of the lecturers have a go at the students who are half asleep from working and studying at the same time. You're there to learn to work, not work to learn!!

I agree that I would work if I didn't have the kids but I'd still find it hard to fit in my studies and a job. I'm doing all my dissertation research this summer on top of kiddie time, as recommended by my tutor. 5 months just isn't long enough to get it all done whenyou have to interview industry professionals etc.

Mikeyorks

Dora_the_Explorer wrote:

Can any student tell me why they have to get into debt? If they work full time during the holidays and part time during term time surely this generates enough income to live on throughout the year? I studied as a mature student, with no grants, worked at the same time, paid my way and incurred no debts whatsoever.

Dora, suspect the majority answer / difference is in your use of the word 'mature'

Regrettably most students are 'immature' - when it comes to money / management and any form of self discipline. They perhaps know more than in my era - but understand less, despite all the help channels now available. And, released - perhaps for the first time - from parental oversight, with money in their pocket, simply lose all sense.

'Mine' - took sufficient to Uni to last the entire 3 year course. And blew it all + proportionate Grant within 6 months. I did see the writing on the wall, just before he left, but pleading, cajoling, blackmailing him to transfer most back to an account I would own and filter out to him - and pay the tax on - was scorned.

I often reflect on the wisdom contained in this piece - regarding the control of 'children's' money - it's very appropriate :-

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1108986373,87407,#worth (the money goes direct ...)

Fortunately I've been in a position to bale DS out with a monthly allowance. But the trust in his financial acumen - is lost forever. He is on warning that the merest hint of a Credit Card in his possession, loses the allowance. But I didn't include 'overdraft' - and have just discovered one! Which I will reluctantly pay off at the term end.

But the fact he could have been in relative clover - appears never to impact his consciousness. And his friends at Uni - simply 'ditto'!

He will have a lightbulb moment at some time - but nothing I can screw in produces the faintest flicker at the moment.

Dora_the_Explorer_5

Oh dear - I seem to have stirred up a small hornet's nest. I understand the plight of nursing students, sadly caused by the requirement that nurses now need a degree which for some inexplicable reason has resulted in the general public feeling that nursing standards are lower now than they once were. Medics don't count, they can afford to invest in a lot of debt to secure their future quite substantial earnings.
Having read through the thread, it seems that people are intelligent enough to read for a degree but not intelligent enough to understand money. Quite a curious state of affairs.
Perhaps we've reached a point where debt is normal and people feel they are entitled to a particular standard of living despite their income rather than because of it. As my old granny used to say 'Fur coat and no drawers'.
I shall now put my tin hat on and retire to the nearest bunker.

savvy

jago25_98 wrote:

I'm still not entirely sure whether it's best to pay off the debt or not

LOL well I never got the choice! But then I entered teaching and got a golden hello, which the SLC took a huge chunk of, which they shouldn't have done becasue some idiot filled the wrong date in on my form BUT then I entered the RTL scheme and now get my monthly instalment paid for me

in_my_wellies

Savvy, what is RTL?

If after two years and having taken out the student Loan, a student earns more than £15,000 on his placement year, does he have to start paying it back for that year before returning to uni for the final year?
Thanks

kar

No. you don't have to pay back loan during placement year. infact you can even take out a loan that year if you so wish.

savvy

in_my_wellies wrote:

Savvy, what is RTL?

If after two years and having taken out the student Loan, a student earns more than £15,000 on his placement year, does he have to start paying it back for that year before returning to uni for the final year?
Thanks

Repayment of Teachers Loans scheme, so if you go into teaching they will pay your instalments whilst you remain in teaching...............it's one of the things that keeps me in my job