Tough lessons in making every penny count

THE long summer holidays may almost be over but never has it been harder, financially, to be a student.

Student loans, impending graduate tax and no guarantee of getting a job once they have graduated have led to more students seeking help with their finances than ever before.

Gone are the carefree student days when all you had to worry about was whether you had enough money for the subsided Student Union bar. Today's university students are seriously worried about

their debts.

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Keighley-based debt management specialist, Debt Advisory Line has experienced a sharp rise in the number of calls it receives from students and graduates who are struggling to either pay off debts built up over during their studies or are stacking up debt as a result of not being able to find work after graduating.

Martin Chapman of Debt Advisory Line, based in Cross Hills, said: "One in four graduates from some universities were left unemployed after finishing their degrees last summer. This can put an enormous strain on finances.

"Students need to get into good cost-saving habits from day one and this way the chances of getting into difficulties on graduation, whatever the economic climate at that time, are greatly reduced.

"For those embarking on student life for the first time, managing cash can be a struggle and often the first time they have had to make ends meet without parents on standby. Those returning to uni will be all too familiar with fine-tuning finances but often the return to their studies marks a new set of challenges like living with friends and having to cater for themselves. There are, however, ways that both new and returning students can make savings without too much effort."

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Debt Advisory Line has combined some simple but effective student money-saving advice to help students save much needed cash and enjoy their studies and student life to the full.

TOP 10 TIPS FOR STUDENT SAVINGS

1. Definitely take out a student loan. Even if your parents are financing your studies, don't miss the chance to take out a student loan: They're cheap – in fact, the current rate of interest is zero – and you can always stick the cash in a savings account such as a tax-free ISA. The loans need not be repaid until you graduate and start earning 15,000 a year.

2. Check if you are eligible for a student grant. These aren't what they used to be, but are still a huge help to students from low-income families. To check your exact entitlements, visit direct.gov.uk

3. Don't miss out on non-repayable bursaries. Universities charging the maximum tuition fees offer bursaries of at least 300 for those students entitled to a full maintenance grant and some are as high as 1,000. See bursarymap.direct.gov.uk

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4. Use specialist suppliers for kit. For example, for second-hand computers, try studentcomputers.co.uk, and for discounted software, see software4students.co.uk. Do your homework on these and check online reviews and forums.

5. Use discount cards. By paying 10 for a "NUS Extra" card, students can save five per cent off book orders through Amazon, as well as reductions on insurance from Endsleigh and discounts at various high-street retailers.

6. Saving on tuition. A rewards credit card is a good way to pay tuition fees if the university allows. This should definitely be paid off to avoid interest charges. You can earn up to one per cent of your tuition cost in reward points.

7. Textbooks. As a large student expense, buying used textbooks can make great savings and you can also buy and sell privately, bypassing any used-bookstore fees.

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8. Saving on rent. Living at student residences can be a lot of fun, but it can also be expensive. Debt Advisory Line recommends this for the first year but advises other options thereafter. If living at home is an option, this can save a lot of money.

9. Share petrol. Share petrol with friends who are from the same region as you. Car-pooling for trips home makes sense when driving back for a weekend or holidays.

10. Food. When shopping, opt for supermarket own brands instead of pricey premium branded products. These often taste the same but can drastically reduce your shopping bill. Don't forget to make a list, too! If you know what you need and stick to it, you will save money. Look out for three for two offers, saving you multiple trips and money.

www.debtadvisoryline.co.uk

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