What Finance options do I have to help with my Student Studies?

In this article I aim to outlay some of the options students have in terms of financing their studies. University can get very expensive, with course fees, accomodation and living costs - but there is plenty of help available in a variety of forms. Lets begin :

Self finance/Parents/Family

A question you should ask yourself right at the beginning before even thinking of applying for a student loan is, can I afford to goto university without a loan? The majority of people right here will say NO. As mentioned, it can be expensive…but some students can make it through university without the need to take out a loan (which will have to be repaid remember). How is this done? Well…some parents save for their childrens future, e.g. have a fund for their study fees. Not only this, many parents also help with accomodation fees - in fact, some students I know only need to have a part time job in order to make a little money for beer and living expenses. Me personally? I worked during the summer and in holidays 9-5 so I could make enough money to get me through the year. Yes my parents helped me out a lot, but I also made some good money to help with day to day living.

If self finance is out of the question, then carry on reading.

Student loans and Grants from the Government

This has to be one of the most popular methods for financing university. A lot of my friends use loans to pay for accomodation and living costs (although it soon dissapears!). Remember, that if you take a student loan from the government then you will not have to start paying this back until you have left your course and are earning at least £15,000 per year. So this means if you wish to go travelling after university, you are not expected to immediately pay the fees back which is useful.

New, full time students may be eligible for the following loans:

• A student loan to cover the cost of tuition fees (£3,145 maximum for 08/09 students)
• A student loan to help cover the cost of accomodation (£6,315 maximum for 08/09 students)

This is a nice amount of money which will definitely help out to get your degree - but do remember it has to be paid back once you have left and are earning.

The governments student loans section is an excellent resource for information regarding the loans they provide. So click here to be redirected to get all the info you need and to apply when you decide this is the package for you.

Maintenance Grants - to help with living costs:

Some of you may be eligible for maintenance grants in order to help you with living arrangements. The great thing about these grants is that they do not have to be repaid - that’s right, the money does not have to be paid back. Not only this, you can apply for one of these maintenance grants at the same time as applying for a student loan - so there’s plenty of finance options available to you.

How is the amount calculated? Well it depends on your household situation. Those with a low income family will be eligible to a larger grant than those with higher incomes. This is great for those who would not otherwise be able to afford university due to their current situation - why should your family situation stop you from going on to do great things?

What is the maximum amount available? As mentioned…this is dependent on your familys income and it will also differ dependent on whether you are a new student starting in 08/09 or a student continuing with their second, third or fourth year of you course. With all this said, the maximum is £2, 835 through either a maintenance grant or special support grant. Do note that these are seperate forms of grants and although neither of them have to be repaid, you will only be eligible for one or the other.

Again for more information please visit the Government website by clicking here which gives great information regarding this form of finance.

Supplementary forms of Finance:

Student Bank Account

One of the best things about being a student is the fact that you are elegible for a student bank account. These bank accounts give great overdraft limits, and they are interest free whilst you are a student (and some, a little while after graduation).

The overdraft limits differ depending on which bank you use, but the majority of them give interest free overdrafts in terms of £1000’s. Each year, you also have the option of upping your overdraft limit. In year 1 you may have a limit of £1500, year 2 you may be able to make this £2000, then year 3 - £2500 etc. This is a great way to help our when money is tight - and can help with things such as rent etc. As this is interest free, there is no worry about getting charged for using this money. If there’s enough interest then I’ll write up an article regarding the different student bank accounts available - just let me know in the comments section below or through our forums available here.

Oh and I almost forgot, you also get a cool gift from most places for signing up as a student. Some of the ones I’ve seen this past year have been a free mp3 player, or a student rail card (giving 1/3 off rail travel which is useful) so keep an eye out for a good deal.

Do remember that when signing up for a student bank account you will need to provide proof that you are on the course you say you are etc, so make sure you save any info which proves you are a student on that course…e.g. forms from enrolment etc.

Credit Card

Although I haven’t used this method myself, nor would I really recommend this as a way of financing yourself through university - there is always the option of a credit card for emergencies. Remember that credit cards will charge interest on purchases if not paid off by a certain time…so please don’t go racking up huge credit card bills which you can’t pay back - you will be charged. It’d be much better to use your interest free student account instead.

Well that’s it for this guide…Hope you enjoyed it and it provided some useful ideas and links for you.

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If you have any questions or comments then please leave them below. Alternatively - head over to our forums by clicking here! Thanks!