Uni Money
It’s 2008 and your piggy bank is still wheezing from Christmas exertions. With uni around the corner, it’s time to think about resuscitating your finances for the year ahead. We’ll make this as painless as possible...
I f all things financial make you want to scurry under the bed and jam your fingers in your ears, you are not alone. No one likes to think about money, except for millionaires and lottery winners – but if you’re neither of these and heading to uni, the cold truth is that you’re going to need some cash. While the cost of university may be on the rise, so are the options for paying for it. In fact, it’s not a bad time to be a student – you are entitled to better bank accounts, and in some cases, free money (!!!). Here are some things you’ll come across.
Maintenance grants
Money you don’t have to pay back – the very best kind. These grants can be spent on food and a roof to put over your head. If your family earns less than £60,000, you could be eligible for a grant of up to £2,835, paid in instalments.
Bursaries
Even more money you won’t have to pay back. Most unis and colleges have bursaries – reserves of money used to bless students who have financial needs or stellar achievements. Contact your faculty to find out more.
Student loans
Depending on where you’ll be living, you could qualify for a
student loan of up to £4,625 to help pay for your living costs. Unfortunately, you will have to pay this back,
but not until you’re earning an annual
income of more than £15,000.
Student accounts
Don’t miss out on opening a student account. They have interest-free overdrafts (credit at no extra charge), which will come in handy if there is any delay on your money from the government. Most banks will open a student account for you as soon as you have a UCAS letter (conditional or unconditional). However, you may want to wait until you get your results, as this is the time banks announce their new student packages. You can even wait until you get to uni – at the beginning of term, university bank branches have more student advisers to help open accounts.
Choosing a bank
When you start looking at accounts, try not to get dazzled by the free gifts. Banks will parade all sorts before you – alcohol, toasters, kettles, £50, young person’s rail cards – but you need to work out their long term benefit. You may want the 50 quid, but if you will be taking the train to and from university, the rail card could save you double that amount.
Deals aside, the most important thing to consider is the interest-free overdraft and the conditions on paying it back. Your financial circumstances dictate whether you get the full overdraft advertised. When doing your research, make sure you read the small print. A bank may offer a massive overdraft, but require you to start repayments the second you leave uni (and before you’ve managed to find a job). Overdrafts usually start low (around £1,000) and go up each year, maxing out around £2,000.
The Bank Stuff is daunting at the best of times – the trick is to remember that all banks want your business, so the choice is yours! Visit a couple of banks and ask an employee about their student offers. Remember to take notes and take your time, and the best bank for you will surely reveal itself.
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