Record Levels of Student Debt
11/04/2008
The most recent Push survey on student debt shows that first-year students are now accumulating on average £6,000 in debt and will owe nearly £18,000 by the time they graduate. These are record-breaking levels of debt, and students should take every care to save their pennies while they study.
The Student Loans Company is a good starting point: they offer means-tested loans – and in some cases grants – to cover tuition fees and some maintenance costs. On its own, however, this won’t be enough. Students will probably also need an overdraft to cover their living expenses.
Many banks offer interest free overdrafts on their student accounts and competition is fierce. Often the banks will use freebies such as railcards and cash incentives to win business from students. It’s a good idea to look past the freebies and consider what sort of interest is likely to be applied to the account after graduation, as well as what sort of overdraft facility is available at the time.
Another advantage for students is the National Union of Students (NUS) Extra card, which gives discounts on a whole range of items, from insurance products through to clothes and food.
Many students forget that their universities often have bursaries. These are means-tested grants and can sometimes be worth as much as £5,000.
The Student Loans Company is a good starting point: they offer means-tested loans – and in some cases grants – to cover tuition fees and some maintenance costs. On its own, however, this won’t be enough. Students will probably also need an overdraft to cover their living expenses.
Many banks offer interest free overdrafts on their student accounts and competition is fierce. Often the banks will use freebies such as railcards and cash incentives to win business from students. It’s a good idea to look past the freebies and consider what sort of interest is likely to be applied to the account after graduation, as well as what sort of overdraft facility is available at the time.
Another advantage for students is the National Union of Students (NUS) Extra card, which gives discounts on a whole range of items, from insurance products through to clothes and food.
Many students forget that their universities often have bursaries. These are means-tested grants and can sometimes be worth as much as £5,000.
