HELP! Understanding student finance

Thinking about going to university but uncertain of the cost? Or maybe you are a graduate worrying about repayments on your student loan. Never fear, we’re here to give you the complete low down on all things student finance and how to tackle those financial fears.

So, what is Student Finance?

Student Finance is a type of loan that helps students from any financial background pay for their university education (also known as your student loan). 

The student finance package is divided into two categories, Tuition fee loans, and Maintenance loans.

Tuition fees are set by your University and are paid directly to them to cover the delivery of your course. This amount can be up to £9250 per year for a full-time student.

Maintenance loans or grants are paid into your bank account at the beginning of each term to cover living costs. You may have to give details about your household income to determine the amount of loan you will receive. This money can be spent as you wish, but it’s best not to go all big spender with your maintenance loans (though it can be tempting). Ensure you have a budget in place as you’ll have to cover your accommodation, transportation, and other living costs. For ways we build a budget, read our blog here.

Maintenance loan not covering enough?

If you find yourself still in a pickle with your pennies, getting a part-time job could be the answer to your problems. Not only will this supply you with extra pocket money, but it's a great way to gain some work experience and make a few friends along the way!

Here are our top 5 recommended part-time jobs for students:

  1. Student Ambassador - Keep an eye out on our job board, we will be hiring for student ambassadors this year!

  2. Tutor - Enhance your education by teaching others. If you’re particularly good at a certain subject, use the opportunity to gain money from it. Not only may this help your resume, you also have the option to tutor online so you can accommodate your work hours to your uni schedule!

  3. Retail Sales Advisor - Receive benefits such as employee discounts!

  4. Waiter/Waitress/Bar Staff - See if any of your local restaurants, cafes, or bars are hiring, as you may be able to pick up flexible hours. Plus, working in hospitality means you may get tips and top of your wages and free food!

  5. Side Hustle - Why not create your own business on the side? Whether it’s offering a service or creating a product, you could become your own boss and create your own schedule.

If you do decide to pick up a part-time job, remember to not overwhelm yourself with a super busy schedule. Your part-time job should be able to accommodate your uni schedule, not overtake it!

Repaying your student loan

We understand that making loan repayments might seem daunting and it can be easy to let the cost of education feel like a financial burden. However, the loan structure actually has a grace period after you’ve finished studying. Repayments won’t be due straight away which gives you time to get on your feet and find a job once you’ve finished studying. Here’s the good news:

  • Student Finance repayments don’t start until the following April after you have finished your course 

  • You’ll only be required to start paying back your student loans once you're earning above £26,575 a year! Phew! 

Don’t let the fear of debt deter you from going to university if you want to go, however, it’s wise to always be in the know about how it works. If you need advice or are looking for more information on student loans, check out gov.uk/student-finance for more information.

The following is for general information and is not intended as a form of financial advice by Finndon or its representatives, nor the information intended to be relied upon by individuals in making any financial decisions.

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