Student Finances: The Truth About Loans – And How Not To Blow It All Up | Clearing



Amid the clamor to free up places, students tend to focus only on entering college, rather than how to pay for it. A student loan is the most cost effective method for many because repayments are part of income and unpaid debt is written off after 30 years.

UK students going through clearing apply for loans the same way other students do – through Student Finance England or the equivalent body in their country. But changing courses can affect your demand – where you live while in school affects your maintenance loan, for example.

Questions and answers

What is erasure?


Compensation is part of the admissions process matching students with vacant places at UK universities.

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It is therefore essential to update your application, to avoid delays. “Starting college without money for food, travel or rent can be scary, says Joe Woolway, senior financial support officer at the University of Sheffield.

Annual tuition fees for UK and EU students studying in England are capped at £ 9,250. The loans cover the full cost and are paid directly to the university. UK students and some EU students can also apply for a maintenance loan for living expenses; this is deposited directly into the student’s bank account.

The amount you receive depends on the household income; less than £ 25,000 and you are eligible for the maximum loan. Above this threshold, the loan amount is calculated on a sliding scale. Use the government’s online calculator to estimate how much funding you will get.

In addition, universities often provide abundant financial aid. Sheffield awards scholarships of up to £ 1,500, for example, partly based on household income. “Having extra finances helped me get through the tough times – when I overspended at the start of the semester and ran out of resources at the end,” says Rosie Ogunade, a psychology student. 19 years old at university. Search and apply for such awards on the Scholarship Hub website.

A part-time job can be a good little source of income. Chloe Batten, 20, an English student, was paid by the University of Warwick to participate in open days and other events. “These are one-time jobs, so they don’t interfere with my exams,” she says. “And they look good on my resume.”

But the best advice for staying financially healthy is budgeting. “Live on the outskirts of town, shop in inexpensive supermarkets and grab a packed lunch to attend lectures,” says Raquel Marques, 22, vice president of the Middlesex University Students Union . “You can have the full college experience without breaking the bank – if you’re smart. “

Student loans and refunds

£ 11,354 The maximum maintenance loan for 2018/19, if you live away from home in London.

£ 8,700 The maximum if you live far from home but outside the capital.

£ 7,324 The maximum maintenance loan for students living at home.

£ 9,963 The maximum maintenance loan for students living and studying abroad for one year on a course in the UK.

9% Interest amount for English or Welsh students starting classes this year will be refunded on any income over £ 25,000.

£ 37 The monthly repayment for someone who earns £ 30,000.

3.4% UK Retail Price Index (RPI). Current student loans bear interest at RPI plus 3%. Graduates earning less than £ 25,000 pay interest to RPI; those earning more pay more – up to RPI plus 3% for those earning £ 45,000. Interest is capped at RPI plus 3%.

“Don’t treat your overdraft like free money” – how I live on a student budget

Tarik Crooks: ‘I tutor during the school term. It’s fairly well paid and it doesn’t take too long. Photography: Laura McCluskey, Getty Images

Tarik Crooks graduated in Chemical Engineering from the University of Manchester.

When I was younger my mom bought everything, so it was important to realize how much basic items like toilet paper and toothpaste cost.

My parents chatted with me because I guess they didn’t want me to come back every two weeks to ask for money. But it’s one thing to hear the facts from your parents, and it’s another to have money deposited into your account at the start of the quarter. It’s so easy to spend when no one tells you not to buy stuff.

My biggest expense is food and entertainment. I spend between £ 20-30 a week on food. In my first year I went to Sainsbury’s because that’s where my parents go, but I found it best to go to cheaper stores like Aldi and Lidl. They have their own branded products for a fraction of the price and it’s at least £ 5 on my weekly shop.

I try to enjoy things in moderation, so I go out at least once a weekend and do something like the movies. I joined the uni gym at the start of the term and since it was close to my birthday I asked my parents if they would buy it as a birthday present. It saved a bit. And I also got a one-year pass immediately because it’s a big expense.

I give private lessons in mathematics and in the three sciences during the school period. It’s fairly well paid and flexible and doesn’t take too long. I also get a summer job so that I can go on vacation with friends to Europe. You can get a good deal if you book well in advance.

My advice would be not to treat your overdraft like free money. I know people who went out and bought a lot of clothes and then found themselves overdrawn by £ 1,500 and wondered how it went.


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