Student Finances

September is the time of year when as a student, you may be about to start your first year at university or return to continue in to your second or third years. Given that the average student debt is expected to be over £20,000 after graduation, an important part of your preparation for the approaching year ought to be the way you will deal together with your finances.

As a full time university student, you are entitled to get an annual loan of £3225 to cover tuition fees And an additional maintenance loan of up to £6900 to pay for living costs. £6900 may sound plenty of money. However, in the event you break this down in to two terms of 11 weeks each, it is the equivalent around £200 per week to cover both accommodation And living costs. As such, you will require to manage your money carefully to make sure that you are not living off baked beans And potatoes by the time you get to the middle of the third term.

In the event you have not already selected a student bank account, you will require to do this. Different banks will offer different incentives. I have mixed views about taking up an offer of an interest free overdraft. On the one hand, this is a nice suggestion to give you a safety net if money gets tight. However, in my experience, in the event you know you have an overdraft facility obtainable, you are very likely to make use of it to supplement your general living expenses. As such after graduating, your overdraft will definitely be outstanding as an addition to your total debt.

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