If you’re considering going to university, there is a strong chance
that you’re also contemplating taking out a student loan to fund your
university expenses. Student loans don’t have to equate to student debt
and if you plan your finances, it is possible to get by without student
loans and possibly even profit from them. There are many sites on the
internet which provide downloadable student finance guides and online
advice on how best to manage your finances. Moneynet offers a
comprehensive student finance guide (
http://www.moneynet.co.uk/student-finance-guide/index.shtml), whilst
the money section on support4learning is also a popular internet
resource. ( http://www.support4learning.com/ ).
The first step to avoid financial dependence on a student loan is to
consider taking a gap year to gain experience and earn money. This is a
great opportunity to start saving for university and will give you
funds to cover accommodation and bills without tapping into your
student loan.
In terms of managing your personal finances, you could open up a notice
savings account and invest your gap year earnings – alongside a student
loan, accruing interest on the total amount, but being disciplined so
that you only ever tuck into your savings – not the loan itself.
If you’re comfortable that you can timetable it – you might consider a
part-time job to help finance your studies, using your income to cover
the majority of your expenses so that you can leave your bank savings
alone. There will be times when you may have to make a withdrawal from
your savings account, but if you leave the capital there as long as
possible – the more money you will make.
If you’re concerned about getting the maximum amount of interest on
your loan, you could try doing a savings comparison search on the
internet. Sites such as moneynet.co.uk (
http://www.moneynet.co.uk/banking-saving/index.shtml ) and
reviewcentre.com ( http://www.reviewcentre.com/products2312.html )
allow you to compare different accounts alongside each other.
If you keep a tight grip on your finances, then it is likely that you
will be in a strong position to pay off your loans when you graduate.
Whilst studying, you might also be interested in conducting price
comparison research for insurance and current accounts to ensure you’re
getting the best deals. Don’t be seduced by high street offers of
freshers’ fair promotions – collect as much information as you can, so
you can make an informed financial decision. It’s also worth setting
yourself up with online accounts which you manage through an account
aggregation tool. Account aggregation allows you to manage your money
online and can save you time, foot leather and bank charges. If you
want to find out more about account aggregation, visit the Channel 4
website which offers a detailed guide. (
http://www.channel4.com/4money/banking/features/account_aggregation_161204.html
)
