Student life and avoiding graduate loan debts

As a student, money is always a difficult subject. Currently the average student leaves college with over £13,000 in debt. With the introduction in the autumn of top-up fees, students in England and Wales will be charged £3,000 a year which is more than double what most pay now, things will only get worse. Today’s student needs to study hard, to stand any chance of getting one of the dwindling number of highly competitive graduate jobs that still exist. Students also need to save what little money they have, and be extremely financially aware, if they are not going to experience lifelong crippling levels of personal debt after they graduate.

Standard student jobs such as stacking shelves in supermarkets, becoming a part-time retail sales assistant, bar work, call centre representative, data input operator, or working for the students union, are all useful tools to keep the funds coming in, but it seems that sometimes it is not always enough. A quick search on the internet can bring up a host of additional ways to supplement a flagging income. Barclays Bank (http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=articleFWgroup&value=9404&target=_self&site=pfs) has a host of interesting and innovative ideas, such as taking part in police identity parades, becoming a TV/film extra, trading on eBay, event stewarding, mystery shopper, internet researcher or survey taker. There are also many blogs which talk about plans to make additional money. Some of these, like nevblog.com, also show tracking of how successful various ideas have been.

As well as trying to make additional money, saving existing funds is also extremely important. As a student it is extremely important to shop around for the best insurance, current accounts and savings accounts. It is also a sensible precaution to avoid taking out a credit card, as the temptation to spend "the banks money" and pay it back later, can easily become a rapid slide into debt. Financial website, Moneynet (http://www.moneynet.co.uk/student-finance-guide/index.shtml), recommends that, "If you have to borrow, make sure you always establish the cheapest forms of credit available such as interest free overdrafts and student loans. However, remember to check your contracts when you graduate, it doesn’t take long for the Student Loans Company or your bank to start claiming back what was free money at university."

Many UK graduates are finding it particularly tough in today’s climate, as they are often brought up to believe that upon graduation they can easily obtain high powered corporate jobs with large salaries. The truth is that many young people leave university only to be hit by the hard reality that the competition in the employment market is immense and that expectations must be lowered. Some graduates, unable to find work immediately after graduation, get themselves into further debt by taking out career development loans and other forms of commercial loans in order to undertake further qualifications. Due to the increased volume of UK graduates in the job market, the need to stand out has made life much more competitive. Contacts, professional qualifications, Masters Degrees and most importantly relevant work experience are now required to help secure a "graduate" career.

The lower the debts which have been accrued whilst studying, the greater the room for employment maneuverability and increased number of possible options are available after graduation. Without the burden of high levels of debt, more time can be taken to find that ideal job, and there is more money available to travel to secure the perfect career and any possible relocation costs which are involved.

Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.

This article is not a substitute for obtaining professional advice from a qualified person or firm. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.