University: A Course in Personal Finance

Recent findings from the Educational Policy Institute indicated that the UK is the third most expensive place in the world to go to university. Combine this with figures from the Prudential, showing that a third of university students have considered abandoning their studies due to the financial strain they have encountered, and it is not surprising that many prospective students are finding the need to seriously think through the merits of going to University.

Whilst it is true that there are currently loans available from both the government and from banks that are designed to see students through their period of studies, for many this will mean emerging into their adult life with mountains of debt. Barclays Bank has stated it believes that once top-up fees are introduced it will cost about £33,000 to put a child through university in England and Wales. At a time when the number of students has greatly increased and the number of high paid graduate careers appears to have diminished, students now have to factor in the cost of living when making the important decision of where to study. In an article by the Scotland On Sunday, the experiences of a university student from Glasgow show that the question of finance already weighs heavy for some students in their choices of where, or even if, they can study. Moving out of the parental home to take full advantage of university life may become less of an option for students as costs increase and financial assistance decreases.

The president of the National Union of Students in Scotland, Melanie Ward, said: "I think most students underestimate the amount of debt they will leave university with, which will be above £13,000."

With graduates needing to earn £22,000 a year in order to pay off anything more than just the interest on their student loans, many people are in their 30s or even 40s before their debt is fully cleared.

Graduates are also finding that they have to make tough decisions as soon as they complete their courses. With banks, building societies, credit card companies, and other private sector lenders requiring the sums borrowed to be repaid. The immediate question of, "Do I build on the knowledge, work experience and internships, that I've had over the last few years and pursue my dream career, or does the chasing of the perfect job I've been working towards for years, have to take second place to getting back into the black?", is now an all too intrusive reality for many.

Some students are finding it so difficult to make ends meet that they are trying to seek alternative means of resolving their debt. Checkmyfile.com has shown that that the number of students declaring themselves bankrupt tripled in 2004. Another method of reducing graduate debt is getting the loans written off through undergraduate bursary programmes by the military or teacher training, in return for agreeing to a placement period following graduation. There are however some potentially serious drawbacks to both types of schemes. These include possible damage to future career prospects or compulsory placement period in a career which the graduate does not want to proceed with long-term.

All is not doom and gloom however, with university authorities and the Students' Union offering advice at college, and after graduation. Public sector organisations like the Citizens Advice Bureau can provide advice if real difficulties occur. Speaking directly to your lenders can often resolve problems. Switching between loans and credit cards is a good way to help reduce interest payments. Financial websites like Moneynet can provide a useful source of information by enabling students and graduates to see which loan or credit card provider is currently offering the best deal and 0% introductory rate.

It seems budgeting and hard decisions are required by all potential students these days, with a degree in personal finance a desirable pre-requisite before starting actual studies.

Richard works in Edinburgh for a media company, occasionally writing for the personal finance blog Cashzilla, and drinking too much coffee.

---

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

The Changing Shape of Family Finances

Super-mumsIt seems that the proof of maternal efforts is no... Read More

How Check 21 Affects You

The Check 21 Law is the new federal law for... Read More

Accessing Funds You Never Knew You Had- Household Utilities and Mortgage Expense Reduction Plan

For most of us the process of getting out of... Read More

Bankruptcy Laws Get Tougher - More Expensive

If you've been thinking about filing for bankruptcy, your best... Read More

Save Your Money, Dont Give to Charity Scammers

**If it's Spam, it's a Scam!- If it sounds too... Read More

University: A Course in Personal Finance

Recent findings from the Educational Policy Institute indicated that the... Read More

How To Place an Online Order for Checks ? It is Easy as 1-2-3

If You Have an Existing Account and 5 Minutes, You... Read More

Creating A Household Budget

Creating a budget can be a very difficult task. Although... Read More

Is There A Retirement Crisis?

When people speak about the increasing age expectancies, they generally... Read More

5 Steps to Healthy Spending Habits

Next to our physical health most of us are primarily... Read More

Do You Really Need the Power of Money Management Software?

I have been a loyal user of Quicken(R) for more... Read More

How To Survive The Grocery Shopping Blues

If you are the normal consumer, then you've probably experienced... Read More

Vesting and Your 401(k)

Do you have a 401(k) retirement account? Are you vested... Read More

Personal Finance ? Why You Should Compare, not Despair

Sorting out your personal finances can be a tricky and... Read More

7 Simple Ways To Save Money

Each of us knows how to spend money, but do... Read More

The World is Not Enough - Calling for a More Ethical Approach to Personal Finance

At a time when the entire world's attention is focused... Read More

A Fresh Start for Family Finances in 2005

While 40% to 50% of us make New Year's resolutions... Read More

Personal Finance - Have Consumers Had a Belly Full of Personal Debt?

For months, we were trigger-swipe happy, putting our groceries, clothes,... Read More

10 Tips to Make Sure Your Financial Budget Will Succeed

You've analyzed your past expenses, put them into spreadsheets, loaded... Read More

Credit Card Debt ? Watch Your Credit Report and Your Bill

Most consumers are aware of the importance of their credit... Read More

Improving Your Financial Position

If you want money you need to learn how to... Read More

Money Matters - Really!

One of the biggest challenges facing black RELATIONSHIPS today are... Read More

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

We have heard a lot about consumers' personal information getting... Read More

Are You Sick of the Financial Insecurity of Fluctuating Seasons and Income?

Finding a stable and secure income that will come year... Read More

Planning Ahead with Your Finances

If you, like most people, have not seriously considered what... Read More

Budgeting is Essential for a Single Mothers Success

Today many women are struggling with debt and it's even... Read More

Debt Management ? Watch Out for Bank Fees!

During the last twenty years, banks have offered a number... Read More

Budgeting Tips to Save Real Money

Sticking to a budget can be difficult, but with so... Read More

Basic Bank Accounts Failing the Basic Needs of Consumers

The lists of bank and savings accounts that are available... Read More

Banks Are More Than Just A Place To Park Your Money

If you've been to a shopping mall lately, you've probably... Read More

When do You Need a Financial Management Company on Your Side?

We live in a crazy world. Someone ought to sell... Read More

Grocery Savings - Your Kitchen is a Goldmine!

Your food budget is the most flexible area of your... Read More