As students across Britain are preparing for their return to university, debt management firm Debt Advisory Line is warning that it has noticed a sharp rise in the number of calls it receives from students and graduates struggling to pay off debts.
The firm is urging students to take a thrifty approach to spending to avoid spiralling into debt.
Martin Chapman of Debt Advisory Line says: ‘One in four graduates from some universities were left unemployed after finishing their degrees last summer which can put an enormous strain on finances. Students need to get into good cost saving habits from day one and this way the chances of getting into difficulties on graduation, whatever the economic climate at that time, are greatly reduced.
He added: ‘For those embarking on student life for the first time, managing cash can be a struggle and is often the first time they have had to make ends meet without parents on standby. Those returning to university will be all too familiar with fine tuning finances but often the return to their studies marks a new set of challenges like living with friends and having to cater for themselves. There are, however, ways that both new and returning students can make savings without too much effort.’
Debt Advisory Line’s top ten tips for student savings:
1. Definitely take out a student loan
Even if your parents are financing your studies, don’t miss the chance to take out a student loan: They’re cheap – in fact the current rate of interest is zero – and you can always stick the cash in a savings account such as a tax free ISA. The loans needn’t be repaid until you graduate and start earning £15,000 a year.
2. Check if you are eligible for a student grant
These aren’t what they used to be, but are still a huge help to students from low-income families. To check your exact entitlements, visit direct.gov.uk.
3. Don’t miss out on non-repayable bursaries
Universities charging the maximum tuition fees offer bursaries of at least £300 for those students entitled to a full maintenance grant and some are as high as £1,000. See bursarymap.direct.gov.uk
4. Use specialist suppliers for kit
For example, for second-hand computers try studentcomputers.co.uk, and for discounted software see software4students.co.uk. Do your homework on these and check online reviews and forums.
5. Use discount cards
By paying £10 for an ‘NUS Extra’ card, students can save 5% off book orders through Amazon, as well as reductions on insurance from Endsleigh and discounts at various high-street retailers.
6. Saving on Tuition
A rewards credit card is a good way to pay tuition fees if the university allows. This should definitely be paid off to avoid interest charges. You can earn up to 1% of your tuition cost in reward points.
7. Textbooks
As a large student expense, buying used textbooks can make great savings and you can also buy and sell privately, bypassing any used-bookstore fees.
8. Saving on Rent
Living at student residences can be a lot of fun, but it can also be expensive. Debt Advisory Line recommends this for the first year but advises other options thereafter. If living at home is an option this can save a lot of money.
9. Share petrol
Share petrol with friends who are from the same region as you. Carpooling for trips home makes sense when driving back for a weekend or holidays.
10. Food
When shopping, opt for supermarket own brand instead of pricey premium branded products. These often taste the same but can drastically reduce your shopping bill. Don’t forget to make a list too! If you know what you need and stick to it, you will save money. Look out for offers with three-for-twos saving you multiple trips and money.
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