Cure the debt hangover from your student days

As the heady days of student life become consigned to the realm of nostalgia, it’s time to pick up the tab.

Reality might begin to bite when you find yourself landed in thousands of pounds worth of debt, money flowing out of your account that you cannot keep track of, and a credit history tarred from years of abusing credit. However, there are some quick and easy steps you can take to get your finances back on track.

Clean up your overdraft act

While your overdraft may have seemed like your best friend during your student days, now you are no longer studying it is likely to be more of a curse, particularly if it has become a permanent state of affairs.

Most student current accounts give you a grace period of a year or so to pay off your overdraft before hefty interest rates and other charges are added, so you will need to act before it starts costing you dearly. But how?

Cut the cost of your balance in the red

To do this, you essentially have two options:

1.    Transfer to a new overdraft account – the aim here is to get an account that will accept your outstanding overdraft and make it cheaper or, ideally, interest-free while you work on paying it off.

If you are a recent graduate, you should first look at switching to a specific graduate current account – this does not necessarily have to be with the same bank as your student account – as most offer interest-free overdrafts for two or three years after you graduate.

If it has been a while since your student days but you have never made it out of your overdraft, a standard current account with an interest-free overdraft is worth considering. Alternatively, you could look at moving the balance to another interest-free home, such as a balance transfer credit card.

2.    Transfer to an interest-free credit card – 0% balance transfer credit cards which offer money transfers could help you to significantly cut the cost of your overdraft balance. Using one of these cards, you will be able to pay off your overdraft balance by moving the debt onto the credit card. You will then be able to work at paying it off without any more interest being added.

Of course, the biggest drawback of using a 0% balance transfer card is that the interest-free period will only be temporary, often between three and 18 months long. If you have not cleared your overdraft by the time this deal is up, you will need to move the balance again. You will need to pay a handling fee (usually around 2-3%) each time you shift your balance too.

If you don’t fancy having a time limit imposed on you, you could consider moving your overdraft debt to a lifetime balance transfer card. Lifetime balance transfer cards will apply a low rate to your borrowing until you clear the balance, however long that takes.

Clear the balance

Once you have your overdraft balance cornered on an interest-free card or current account, you can work on clearing it for good so that part of your student debt hangover is wiped out.

Read our article on clearing the balance on your overdraft for more information.

Sort out the state of your credit cards

It may be that you ran up thousands of pounds worth of debt on credit and store cards while you were at uni, and it is only now, as you begin to look at the state of your finances, that you realise just how much you've spent on them during the last few years.

Again, the best course of action is to simply pay these off if you have the means to, but as you are unlikely to have a spare £1,000 laying around in the post-student fallout, your options are to make the credit card balances cheaper by transferring them elsewhere, then working on paying them off over time.

Prioritise outstanding loans

If you took out a personal loan while you were a student, you will have to look at how to make this cheaper too by paying it off or transferring the balance to an interest-free home. However, these are a little trickier and you will have to look at the loan terms carefully to avoid being charged for paying off the loan early, for example.

Figures like this can be alarming to say the least, especially when you barely have enough in your pocket for basic living expenses. The best thing to do about this whopping loan is not to worry too much about it.

Firstly, you will only have to begin paying back that loan when your earnings exceed a certain threshold (currently £21,000 per annum). At that point, a relatively small amount will begin to be automatically deducted from your wages and put towards paying off your student loan.

It is also worth noting that your student loan is likely to be the cheapest loan you will ever receive. Read our guide on whether or not you should pay off your student loan early.

Another outstanding loan that might be on your mind is money that was lent to you by family and friends during the course of your studies. Hopefully this will not be accruing interest, which means it’s not a priority to pay off if you have other debts that are not interest-free, but you should still work on paying it off as soon as possible if you want to stay on the right side of your nearest and dearest.

Tidy your credit report

This could be the first time in your life that you have thought about your credit report, and it is essential to get it in shape so you don’t have problems in the future with getting credit when you really need it – getting a mortgage for example, or financing a new car.

Moving around a lot while you are a student, as well as missing payments on credit cards and racking up debt in your overdraft, can mean your credit report comes out of the whole experience a little worse for wear.

As such, the first thing you should do is check your credit report. This will show any defaulted payments from the last few years, as well as the last addresses you are recorded as having lived at.

Check all the information is correct – for example, if you see an address listed that you have never lived, at or an account opened in your name that has nothing to do with you, you should contact the credit agency and inform them of the right information.

You can then start taking steps to rebuild your credit rating and to create a solid credit history. Obviously this will mean making all future credit payments on time, whether that is on your mortgage, a credit card, or a personal loan. You can also do things to make yourself look like more of a 'stable' borrower by registering to vote – read our guide for more details on how to improve your credit rating.

Source: money.co.uk

Not holding any teacher training offers? You may be able to use Apply 2...

If you’ve applied for teacher training programmes starting this year but are not holding any offers, you may be able to apply elsewhere using Apply 2. If you’re thinking about taking this path, there are a few things to consider first.

1) Check vacancies
Before using Apply 2, give the training provider a quick call to make sure they still have vacancies for the training programme you’re interested in. Even if the training programme is listed with vacancies in our search tool, it’s still worth double checking.

2) Is it the right programme for you?
Don’t rush into adding the first training programme that looks appealing – research what it offers and whether it meets your expectations. We’ve got lots of advice on what you should consider when choosing a training programme.

3) Open days
Where possible, try to attend an open day to get a better feel for the training provider before accepting a place. You’ll get to see the provider in action, learn more about the area, and will have a great opportunity to meet the tutors and ask questions about the programme.

4) Interviews
You’ll need to attend an interview before you’re offered a place. Keep this in mind when applying as you may be asked to attend an interview within 40 days of adding a choice. If you’re offered an interview, congratulations! Check out our top tips on how to prepare before you attend.

If you have any questions, take a look at the Apply 2 information on our website, or get in touch with our advisers on Facebook or Twitter.

How to afford to send your child to university

If your child is hoping to go to university in the next few years, chances are you’re more than a little concerned by the recent jump in tuition fees. Here is what you can do to prepare your finances (and theirs) for university life.

Going to university can be an essential step onto the career ladder, but with tuition fees up to £9,000 a year, getting a degree has never been less affordable.

If you or your children are planning to go to university in the not too distant future, it is essential that you consider how you will cover the cost sooner rather than later.

Fees
Students who started their education from 2012 onwards fall into the higher fee threshold, where universities can charge anywhere up to £9,000 a year in fees alone.

However, not all course providers have decided to set their fees to this maximum level. Check how much the universities your son or daughter is looking at plan to charge for their chosen subject, and take this into consideration before they apply.

Accommodation costs
Accommodation costs represent one of the biggest outgoings for students.

• Most undergraduate students spend the first year of their studies in university halls of residence, before moving into private rented accommodation.

• Compare their cost of staying in halls to that of renting a room in a house in the town or city where they will be studying.

• If your son or daughter is studying closer to home, they may save money by staying with you and commuting to university rather than paying accommodation costs.

• Some student halls may be catered, meaning they’ll cost more but will provide meals for your son or daughter. Work out whether they would spend more on food if left to their own devices.

• Your son or daughter may also be able to cut the costs of student accommodation by volunteering as a warden, although this is not always open to undergraduate students.

Start saving
Saving in advance is a must for any potential student and their parents. Even if your son or daughter is heading off to university in just a few months, it is never too late to start putting money aside, especially as the first few months can be some of the most expensive.

You can also encourage them to do the same by taking advantage of the better interest rates offered by under 18s savings accounts.

Compare instant access accounts to find an option that helps you and your child save for the cost of university life and lets you draw your money when you need to.

Check for bursaries and grants
Checking each university's website for grants and bursaries, and applying for any that you are eligible for, is a good way of reducing the cost of your child's university education.

Some universities offer money to the highest academic achievers, to encourage applications from the highest achieving students. If your son or daughter needs any extra motivation to study, the possibility of a financial reward for their efforts could help spur them on.

Apply for student finance
Your son or daughter can apply for both a tuition fee loan and a maintenance loan:

Tuition fee loan
The tuition fee loan is paid directly to the university to cover the annual cost of their tuition fees.
This means the money never actually passes through your child's bank account.

Maintenance loan
The maintenance loan is designed to provide funds to cover the costs of living while studying.

The amount your son or daughter will be eligible for depends on your household income and where they will be living during their studies. For 2016/17 the maximum available to students is as follows:

• £6,904 for students living at home while studying
• £8,200 for students living outside of London and away from home
• £10,702 for students living in London and away from home
• £9,391 for students living or studying abroad for at least one term

Remember, while a student loan is one of the cheapest ways of borrowing money, it will still have to be repaid once your son or daughter is working and earning enough to pay it back.

Compare student bank accounts
A student bank account is likely to be the centre of your child's finances throughout their university life. Choosing an account that best suits their needs could save them a substantial sum over the duration of a three or four year university course.

Many student accounts also offer other perks like travel insurance or a student railcard that may prove useful and save your child money during their university life.

Compare student bank accounts.

Re-examine your finances
One way you may be able to help your son or daughter is by cutting your costs in other areas, allowing you to save more towards their university fund.

Your utility bills, mortgage provider, and financial products are areas you might want to consider reviewing.

Prepare a budget
If your son or daughter has had little experience in managing their money, then work out:

• what their major costs will be while at university
• what you can afford to contribute
• any other income they will have, such as a maintenance loan or a wage from a job

You could then prepare a budget with them before they leave, outlining how much they can afford to spend each week.

Shop smart
Chances are you will need to buy quite a few household items to prepare your son and daughter for life away from home.


Compare prices online before you buy, or even while you are out shopping, and you could end up saving quite a considerable sum of money in total.

Consider renting out their room
If you need to find extra income to help support your son or daughter, you could consider renting out their room to a lodger while they are away.

Many lodgers will only need a room during the week, meaning that if your child wants to come home at the weekend, they would still be able to.

Source: money.co.uk

Can distance learning earn you a degree in your spare time?

Have you ever considered a distance learning course, but been put off by the cost and a lack of free time? Here is what distance learning is all about, and how you could fit it around your schedule.

Distance learning can be a flexible, time efficient way of learning from home in your own time, without being in regular, face-to-face contact with teachers or lecturers in the classroom.

You are supplied with learning materials by the college or university providing your course, which can be usually accessed online.

You will still have one-to-one tutorials, but these will take place remotely by phone, email, Skype or webinars. Most courses now have message boards and study forums where students on the same course can discuss their studies.

Courses can include summer schools or residential weekends where you can work with fellow students on a specific project.

Why choose distance learning?

Distance learning is a fantastic option for thousands of people, for a variety of reasons.

• Allows you to work and learn at the same time; gain qualifications that will improve your career without giving up work.
• Flexibility to fit your studies around your work and family commitments.
• Access to education even if you live in remote areas, or have health issues or disabilities that make going to university difficult.
• Cheaper tuition fees, and reduces associated costs of campus based university life.
• Quality of the course and qualifications are the same as campus based programmes.
• Distance learning courses often have lower entrance requirements

There are a few downsides, however. You will miss out on the social aspect of campus life, and you will not have access to resources like the university library or regular contact with your lecturers.

Part-time or full-time study?

A major advantage of distance learning is the level of flexibility of scheduling your learning around your day-to-day life. One of the first and most important decisions you will need to make in this regard is whether you will study part-time or full-time.

Part-time study

The part-time option is popular as it allows you the time to study and work at the same time. 70% of Open University students work full-time whilst studying and most will spend around 16-18 hours a week on their course, taking them six years to complete a full undergraduate degree.

Before considering a distance learning course whilst you work have a think about whether you have enough time to dedicate to your studies.

If you think you would struggle to find the time, try to think of creative ways to fit your study around your day. Could you listen to any audio material on your drive to work?

The obvious downside of studying part-time is that it will take you a long time to get your qualification. If you are in no rush then this is not a problem, but if you want to qualify quickly you will need to consider dedicating more time to your studies.

Full-time study

If you study full-time, you will be expected to spend around 35 hours a week on your course. This is not an unreasonable amount of time if you are not working, or if you work a few part-time hours, but if you work full-time it will probably be too much to handle.

It can be tempting to try and tackle as much as possible, but if you are working full-time it is recommended you do not study for more than 18 hours a week. By keeping your study manageable you give yourself the best chance of getting good grades.

If you can dedicate yourself full-time to your studies then you could complete an undergraduate course in three years.

What is available?

Many universities also offer distance learning courses, for example the Universities of Leicester, Derby, Aberdeen and Reading all offer distance learning options. Start by deciding upon the subject you would like to study and pick the course that best suits you.

There are also providers who specialise in distance learning courses, such as The Open University.

Source: money.co.uk

Many thanks to money.co.uk for their words of advice! You can look for distance learning courses in our search tool. Pick the subject that you're interested in then click the 'Flexible/Part-time study' filter to see what's available.

Take the Spotlight - and the winners are...

Our second ‘Take the Spotlight’ competition, exclusively for UCAS Conservatoire students, came to a close at the end of February.

To enter, students sent us a short video. Amongst other things, they were asked to think about:

• who or what inspired them to pursue a music/dance/drama-related course
• why they chose to study at a conservatoire over university or HE college
• the benefits of studying at a conservatoire

One lucky winner would win our top prize of £2,500 and two runners up would bag themselves £1,000.

We received so many truly inspiring entries and… drumroll please, here are the winners…

Winning entry:
Our winning entry came from Liam Vincent-Kilbride who studies at the Royal Conservatoire of Scotland. In his entry he passionately tells us everything that he loves about conservatoire life in this fantastic video.

The runners up
David Sharp from Trinity Laban Conservatoire of Music and Dance and Sarah Lockhart from Royal Conservatoire of Scotland were our runners up with their videos. They both won £1,000 with their inspirational takes on conservatoire life.

Feeling inspired to study at a conservatoire? Check out our website for more information on the courses on offer and how to apply. If you’ve got any questions about how to apply then put them to our advisers on Facebook or Twitter.