University Debt and Financial Support

Graduates are facing an average debt of £12,000 when they finish university, thus highlighting the financial burden facing new graduates. Recent surveys estimate that average graduate debt levels have increased by over 50% in the last 12 months. This leaves many graduates with debt repayments of over £200 a month and in reality it could take anywhere between four to ten years to pay back. Leaving university with five-figure debt sums is unfortunately now a very common fact for graduates.

The modern university experience gives you good budgeting skills and it is vital that these skills are put into practice when you embark on life during and after university. We would recommend you follow these guidelines:

Set a monthly limit for credit card expenses. If you can afford to spend £50 on your credit card each month, stick to that. Once you have racked up that amount, pretend your card doesn't exist. Then pay off your monthly amount in full.
Set up an on online bank account and check your statements and balance every week, so that you aren't caught unaware.
Keep up with monthly payments by paying with direct debits. Then you won't have to worry about buying stamps, filling out cheques etc.
Draw up a list of what companies you owe money to and how much you owe them.
Contact the Student Loans Company to explain your situation.
Check with your bank to find out when your interest free overdraft expires.
Start paying off your debts that accrues the most interest first.
Work out monthly debt repayment outgoings and then other essential.
If you have extra funds available each month try and put some towards clearing outstanding debts.
If you are experiencing real financial difficulty speak to someone who can help - don't keep it to yourself and avoid borrowing more money to pay off your debts.
Check every statement you receive from your lenders carefully. Mistakes do happen, so ensure that you aren't a victim of a double billing, fraud or other problem. Report any discrepancies to your bank or credit card company.

If you can demonstrate that you organised your finances throughout university with less than the average debt that will definitely impress a potential employer!

If you are worried seek help from the Student Debtline on 0800 328 1813. This is run by the UK's leading debt charity, the Consumer Credit Counselling Service and there is no charge for using its service. Lines are open 8am-8pm Monday to Friday.

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Hardship funds
These are available through your university. Hardship funds are created from money the government gives universities to help students in any way they see fit. But the amount you can receive is small (no more than £500) and has to be paid back as if it were a loan. Most full-time and part-time students are eligible to apply for these funds but there are often many conditions attached.

Access funds
Like hardship funds, access funds were created by the government to help out students in financial need. How much and who gets access to these funds varies at each college and university. Students must meet the same conditions of a student loan and be in an undergraduate or postgraduate course. You must be able to prove your financial difficulties. Contact your student services office for more information.

Bursaries and scholarships
Bursaries are offered by companies to students from disadvantaged backgrounds, while sponsorships are given by companies to students for their high academic achievements. There are often many different types of bursaries and scholarships available within each course, so if you're planning on working hard and achieving high grades, it may be beneficial to see if you qualify and then apply. Check with your course office to see what prizes are awarded each year.

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