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Tips To Avoid Student Debt
With students now leaving their studies with an average debt of £14,000 behind them, student debt is a fact of life nowadays. As well as juggling their study hours with paid work to top up their student loans, students have the additional worry of how they are going to pay off their debts once qualified.
So how can students stay on top of their finances during this trying time?
Learn practical skills. From typing and computing to web design and foreign languages, learning additional skills on top of your regular studies will help you to get a good job both after and during university. And you'll benefit from concessionary rates as a student. For example, if you have fast and accurate copy typing skills, you might be able to earn more money working 10 hours per week at your local surgery, school or office block, rather than waiting tables. Some courses are even subsidised by the Government and free.
- Contact The Individual Learning Account Centre on 0800 072 5678
- Find your local Community Learning Centre. These provide free and highly subsidised computer tuition and language training.
Increase income. Since tuition fees were introduced and student grants to pay for them abolished, the majority of students have to work part-time to fund their time at university. As well as serving at bars and restaurants, those with typing skills could find part-time office and administration work, or the more entrepreneurial could try to come up with a unique business idea that won't take much time to run. This could supplement any student loan funds. One innovative student made the news recently when his idea, the milliondollarhomepage.com helped make him more than enough to see him through his studies.
Look in your local newspapers, on student noticeboards and career offices for flexible part time work.
Post your CV on job sites online
Visit Activate - a student job site.
Know your rights. If you are 18-22 years old you must be paid £3.50 per hour, which is the minimum wage. For those 22 or older, this rises to £4.10. This is your legal right and is what you must be paid (as a minimum) by law.
If someone wishes to pay you less than this, you can phone the national minimum-wage hotline on 0845 6000678.
Part-time workers, like their full-time colleagues, are entitled to a minimum of statutory annual leave, maternity leave, and parental leave. Many of these entitlements are extended or enhanced by contractual conditions. Part-time workers should have the same leave entitlements pro rata as their full-time colleagues.
Also, as a student working during the holidays, make sure you request that your employer complete form P38(S) if you are expecting to earn less than your tax-free personal allowance. This means your wages will be paid to you in gross (before tax). If, however, you work during term time as well as holidays, you won't be able to have your wages paid in gross.
Tread carefully when borrowing and banking. As a student, it is not worth borrowing from the bank. A student loan should be your first port of call, as this is the cheapest way to borrow money (other than friends and family) as the interest rate is so low.
Also beware of tempting cash offers that banks provide to tempt students to open accounts with them. Always review the banks rates.
Choose a bank account with a free overdraft facility. Most student accounts provide no interest overdrafts or low interest ones. Also find out what happens to the overdraft facility (and interest/charges) once you graduate.
Seek help and advice. If you cannot afford to study, you may qualify for a hardship fund. Alternatively, you could try to get a scholarship which will contribute to living costs.
If you find yourself in debt or unable to meet payments and bills, contact your university welfare offiicer for advice.
Student Debt
Student Debt: Tips To Avoid Student Debt
Student Debt: Student Debt Rises To £14bn in UK
Student Debt: Student Borrowing FAQ
Student Debt: Students and Credit
Student Debt: What It Costs To Be a Student
Student Debt: Specialist Advice Organisations for Students
Student Debt: Student Debt Case Study
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