Avoid Student Debt
University education nowadays in the UK, has become very expensive for students and their parents. For students to go to college and to avoid accumulating a serious debt after college demands a lot of planning and discipline on their part. Fees are increasing in colleges today. Students in England and Wales are charged as high as £8,000 – £9000 or more in a year in some courses.
Many graduates are still paying for college debts many years into their working careers, some even up to 20 years after graduation. Planning well can reduce this considerably if not reduce it altogether. Nowadays, the average student leaves college with an average debt profile in excess of £20,000 after graduation, based on a recent survey by the Times newspaper. Even though the loan facilities are there, students should not be in the habit of always getting loans all the time because you need to consider that you will have to pay back with interest during your working life.
Students while studying must learn to be financially disciplined by saving a part of the income they have and being controlled enough to limit spending to avoid debts. In order to save money as a student, a part time job may be the way to go. Shop assistant, data input worker, bar worker, product marketer, sales representative, call centre representative, or working for the students union are definite options as they often have flexible hours (especially weekend/evening work). Other jobs that could be part time that students can get engage in include becoming a TV/Film extra, trading on ebay, being a customer service agent online or offline for companies.
Today, jobs for graduates after college are no more easily available, due to the increasing volume of college graduates in the job market. There is such serious competition today in the job market that even makes some college graduates apply for career development loans, in order to enhance their chances of getting job by going for further post graduate studies hence increasing their debt in the process.
Apart from your college degree, having contacts and other professional qualifications, relevant work experience is now considered in graduate employment so students have a further incentive to find part time work during university as some employers may be looking for this experience after graduation.
Further to the student debt story, some believe that the lower your student debt, the greater your chances of employment. Here are some possible solutions of coming out of student debt:
Saving money is very important: earn it, spent a little, save as much of it as possible. Students should search for the best saving accounts with the highest interest rates to save their money. Be cautious when using credit cards because it’s easy to forget that you’ll pay for it someday (with interest). Try to use a debit card instead of a credit card to avoid going into debt.
If you have to borrow money from a bank, shop for the most affordable affordable and cheapest loan offers that are available. You may find interest free overdrafts and very low APR student loans. If you do get into trouble later with debt and making payments, an Individual Voluntary Arrangements commonly called an IVA may be a solution to fixing a debt crisis that would otherwise lead to bankruptcy.
Applying for student Bursaries – Certain students can apply for grants or bursaries to supplement student loans, so this is something to speak with someone at your financial aid office. There are hardship loans, access funds and other types of grants that may be available.
Student discounts – There are discounts for students in areas such as for travel, clothing, cinema, restaurants, and sportswear etc. Using the NUS card gives students numerous discounts and other sites may also offer discounts including free stuff for students.
Other things that you can do to reduce your debt is to commute from home home, share a room in college with a friend, cook your own food as well as keeping that part time job.
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