Many students face financial difficulties while they are at University so careful budgeting is essential to avoid running out of money and getting into debt.
Although we are all familiar with the stereotype of a typical skint student, struggling for money is no fun, so we would advise you to plan ahead to help make ends meet.
You need to remember that your student funding is intended to cover the short vacations (Christmas and Easter) as well as term time. You should also bear in mind that, dependent on your personal circumstances, it is unlikely that you will be eligible to claim welfare benefits if you are studying full time.
It is very likely that your student support will not be enough to cover your essential living costs, so you may need to consider income from other sources such as part time work, savings, parents, hardship funds, etc.
The best way to understand your finances is to…...............Work out your budget!
You will have to think about what you need to spend your money on and make sure that the essentials are paid first. Your priorities should be (in no particular order!):
•rent
•gas, electricity and water bills (if not covered via your rental payment)
•food
•travel
•course costs such as books, equipment, photocopying, etc
Work out how much all of these cost so that you know how much money you have left to spend on other more interesting things! A good way of doing this is via an online calculator as sometimes what you will be left with can be very surprising!
Another tip is to consider opening a student bank account as these normally offer an interest-free overdraft facility. They also tend to offer good freebies such as railcards and as with any bank account it’s worth shopping around to find out which bank is offering the best deal for you.
Do not be tempted to open more than one bank account as it is easy to run up large overdrafts which you cannot later repay.
Unless you are confident that you can repay a credit card/store card in full each month, don’t get one. The interest soon mounts up if you do not pay off the full balance on your account. It may be tempting when you’ve spotted something nice at the shops that you can’t afford, but don’t give into temptation. You may think the new shoes/jeans/bag will make you feel better, but the hefty credit card or store card bill that you can’t pay at the end of the month most certainly won’t!
If you have children then you may find this guide particularly helpful in letting you know your entitlements to funding and possibly state benefits.
Each University will normally have hardship funds that you can apply for if you are in financial difficulty or have an emergency situation.
These may be in the form of grants (non-repayable) or loans (repayable) and we would strongly urge you to speak to a Student Adviser if you are in hardship or feel you will be at some stage.
The main hardship funds that the Universities have is the Access to Learning Fund (ALF) and by speaking to an adviser we can assess your situation and advise you on the best course of action to take.
It is always best to face your financial concerns at the earliest opportunity so that advice can be given quickly and so that you have the best opportunity to deal with the problem and find adequate solutions.
Student funding can be a tricky area. The amount of money you receive depends on your own personal circumstances, you/your financial sponsors income, the type of course you are doing, where you are studying, any previous funding you may have received, etc.
The above will also determine whether you will get loans and grants as part of your funding package or just loans.
Some students are also entitled to University bursaries depending on their household income and the tuition fee charge that the University is making to them.
The below links provide a comprehensive guide telling you what types of funding you can apply for and how to apply:
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