Wallet Doctor's University Survival Guide

Following the abolition of free higher education for most, there has never been a more important time to manage your finances whilst at university. Spiraling student debt is a major issue and students are likely to be faced with student loans, credit cards, housing costs and overdrafts all of which have to be paid immediately or sometime in the future.

There is naturally fierce competition amongst the banks to attract your business so shopping around is absolutely imperative when selecting the right student account for you.

Almost all student accounts will come with an interest free overdraft ranging usually from £500 up to £3,000 and the majority of students choose to take advantage of this. While these facilities can be useful they also can be a way of accruing debt so always see an overdraft as a temporary buffer for times of hardship. It is essential to find out exactly when the interest will start to be applied to the account and what rate you will pay then. This may not apply until you graduate and enter employment but you still need to have this information at hand as you may only be able to reduce this overdraft in small increments.

There will be plenty of incentives and freebies on offer, but don't be swayed by these as the most important issue is which bank account serves your finances the best. That's not to say that some of the incentives are of no use, railcards for example where you'll get a third of all rail fairs for 5 years could prove to be a real benefit especially if you live a fair distance from home or use the train regularly.

Another option is a credit card and as the likelihood is that you will be automatically approved these should be treated with extreme caution. Don't just accept a credit card from the bank that you decided to open your account with but shop around. With a little research you could find a much better deal with a lower interest rate and the chances are an interest free period. You must if you do decide to go ahead with a credit card be incredibly responsible as the temptation to spend is sometimes very hard to resist and can quickly get out of control.

Accommodation whilst studying is another consideration that has to be taken in to account. In the majority of cases student will opt for residing in halls for their first year. Halls are brilliant for making friends and easing yourself in to student life but more often than not will not include meals or extra facilities. The added cost of meals and the quality of the food should be something you consider carefully before deciding upon this option, and other alternatives should always be looked into first before settling on this option.

In many cases halls will not be an option for you after the first year of your course and the likelihood is that you'll move in to rented accommodation. Always investigate the cost of the renting option in your area first and also establish the cost of travelling to college if you plan to live a distance away.

If you plan to move in to rented accommodation then it is important that you come up with a sensible system of bill sharing as you may never have had to deal with this before. It's unlikely as a student that you will pay council tax but most other bills will need to be met. The best way to do this is set up a joint account between all the sharers where you all put the same sum in on a monthly basis. Arrange for them to be paid via direct debit as this will avoid arguments and any left over at the end of the year can be used for whatever you decide between you. Probably a PARTY!

Student Loans & Awards

In the majority of cases financial support will be made available to you during your studies, these are normally in the shape of a loan applied for through you local education authority. The amounts available to you vary greatly depending on you, your course and your familiy circumstances. Always give yourself plenty of time when applying so there is no delay in receiving your first payment. Student loans are not expected to be repaid until you enter employment and are earning over £15,000 per annum. You will be expected to pay interest on the loan, but only at the same rate as inflation so it is still the cheapest way of borrowing whilst studying.

Look into university grants if your parents are on a low income. Some universities and colleges offer bursaries which are offered if you are charged more than £2,700 per annum for your course, the amount of these vary significantly depending on your circumstances, however they do not need to be paid back. If you are an exceptional student and achieved academic success then you may be granted a scholarship. If you find yourself in severe financial difficulty then you may be eligible for the hardship fund, the eligibility of this is very complex but if you can prove that you are in need of help then lump sums of up to £500 are available.

Many students decide to work while they study to ease their financial burden. Always think carefully about the impact this is likely to have on your studies; it may make life a little easier for you in financial terms but if it's likely to affect the outcome of grade of your course then is it really worth it. If it's absolutely necessary that you do have to work then only work the hours required to keep your head above water financially.

Student Union Card

The NUS card is a brilliant way  to save money. You may be able to save in many high street shops and other retailers and often the discounts are up to 25%. Make sure you enquire at your student union as soon as possible and find out where you can enjoy discounts locally.

Continuing to budget after graduation

Once you have graduated you may find yourself having to start paying back the debts you built up whilst studying. The average student graduates with a debt of around £15,000 and quite often they do not receive the financial returns they may have expected straight away. It's therefore important to continue that foundation of budgeting that you learnt whilst studying throughout your adult life. So continue to watch your income, don't make expensive rash purchases and avoid the credit card trap.