If you’re considering either a specialist study loan or a personal loan, you do need to have a plan to repay the loan either via monthly instalments, or at the end of the term.
This might mean trying to make sure you have a job lined up, or enough cash in the bank, in order to afford the monthly repayments you will face upon graduating.
Student bank accounts with 0% overdrafts
A good student bank account with a decent 0% overdraft is one of the most useful financial products anyone studying full time can get.
An overdraft is where you are able to spend more money than you have in your account, allowing you into a negative online payday loans Maine direct lenders balance up to a limit. If it is a ‘0% overdraft’ this means you can effectively borrow for free.
Most student bank accounts should offer an 0% overdraft, but you will need make sure you apply to your bank to authorise it. Also, you need to make sure that you do not spend over the limit you are given, otherwise fees and interest charges will apply.
g. ?1,000 in your first year, ?2,000 in the second, ?3,000 in your third year). You will also typically be given a few years after graduating to repay your overdraft before being charged interest.
Credit cards for students
Credit cards can help cover living costs but should be used carefully by full time students without a regular income.
It can be difficult for a typical full-time student to get a credit card, due to what would likely be a limited credit history and income.
A credit-builder credit card could be useful to get while studying, as it can help build up a credit score ready when your graduate.
But, bear in mind most of these cards don’t include any form of 0% interest period, so you will need to pay off your balance in full each month to avoid being charged interest.
If you do not think you can repay a credit card balance in full each month, it may be best to avoid getting a credit card as interest charges could soon add up and leave you out-of-pocket.
Grants, scholarships and other funding
There are extra government allowances and grants to supplement your student loans if you have children, adult dependents, or if you’re disabled.
In addition to the funds available from the government there are also many scholarships available at most universities which should be detailed on their websites and prospectuses.
If you are struggling to make ends meet, most universities should offer “hardship funds” to help you remain on your course if you are running out of money.
You can get funding for postgraduate study through government loans, as well as studentships, bursaries and grants. You might also get help from your employer if you are gaining a qualification while you are working for them.
You can apply for a Postgraduate Master’s Loan and Postgraduate Doctorate Loan from the government. The loan is paid directly to you and like an undergraduate loan you will need to repay the money once your income reaches a certain threshold. You may be able to get an undergraduate loan for postgraduate teacher training. There is more information available from the government website on Postgraduate Study.
In addition, you may be able to apply for studentships, grants and bursaries. There are seven government backed research councils that provide grants to fund postgraduate study and other university research work, these are: