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Student
fret more over debt than studies
Students
worry more about money than they do about their studies, according
to new research out on 16th March 2005.
Twice
as many undergraduates (59%) cite their finances as being
their main worry, followed by their studies (29%) and having
a good lifestyle and social life (12%), a survey of almost
1,000 students carried out by the Post Office found.
Money worries are one of the biggest causes of tension in
shared households as students squabble over splitting rent
and bills - more than one in 10 (13%) cited finances as the
biggest grievance with the people they live with.
Nearly half of all parents (44%) contribute towards their
student offsprings' rent and bills, but despite this the average
student still leaves university in debt to the tune of £15,000.
Worryingly, nearly one in six students (15%) admitted to having
a lack of control over their spending and not being prepared
for when the bills arrive.
Despite
debt being an obvious part of student life, recent research
from debt advice group Payplan reveals that 47 per cent of
students underestimate the amount of debt they will be in
when they leave university.
The National Union of Students puts the cost of university,
including tuition fees and living expenses, at an estimated
£8,500 a year, and more than £10,000 in London.
This year's graduates owe £12,180 on average, an increase
of £4,055 on 2003, according to a study by NatWest bank
(Five years ago it was £3,700). The study found that
this year's new students expect they will need £26,000
to pay for their time at college. Eighty-four percent of them
predict they will get a part-time job, although only 35% of
undergraduates found work this year, an 18% decline on 2003.
A quarter of all parents say they will have to work beyond
65 to pay for their children’s university education.
Students
earning to pay for their learning
As their thoughts turn to summer, most students are planning
on a working holiday, as fees spiral upwards, and to try and
avoid debts.
If having to work through a "holiday" feels like
bad news, then the slightly better news is that the current
buoyant labour market is going to provide plenty of opportunities.
This year's annual Unite/Mori survey of student life showed
that 53% of students are working full-time or part-time during
the university holidays, up from 48% last year. With the prospect
of tuition fees almost trebling next year, this figure can
only be expected to rise further.
A sharp increase in working, both in term-time and the holidays,
is one of the big changes in student life. The number of students
who don't work either in term-time or during the holidays
has more than halved in four years, from 44% to 21%.
For instance, the Summer Jobs Britain directory says that
Legoland employs 300 people for the summer, in various food
and merchandising outlets and helping with rides. The influx
of language students to Britain each summer has also been
a traditional stand-by for temporary work. Teachers will need
a qualification in teaching English as a foreign language
(TEFL), but there are also jobs for activities organisers
and other visitor helpers. Language school chains can take
on up to 1,000 summer staff.
The minimum wage still applies to these temporary jobs. The
current minimum for 18- to 21-year-olds is £4.10 per
hour and for workers over 21, the legal minimum is £4.85.
Master
your finances and then apply to uni
The number of postgraduate students has increased fourfold
in the past decade, with some 30 per cent mid-career. So,
if you want to join their swelling ranks in September 2005,
the sooner you start forward planning to minimise the impact
on your life and your wallet, the better.
Prospects.ac.uk,
the UK's official graduates career web site, is a one-stop-information-shop-cum-portal,
and a great place to start. It efficiently allows you to pinpoint
which course, subject and university; offers links to career
advice services for those still unsure; lists independent
sources of help in getting on the course (mastering applications
and interviews); and helps you prepare for study once you
are accepted (computer refresher courses, for example).
Alternatively, you can seek this information as an alumnus
from the careers services of the university you graduated
from.
A thorough cost analysis is of paramount importance. With
fees ranging from £3,000 for a basic part-time masters,
to £30,000 for an Ivy League full-time MBA, there are
a number of ways to pay in addition to hard earned savings
or a supportive spouse.
For a course that helps you progress with your existing job,
your employer may be willing to help through a form of 'golden
handcuffs'. You study, they help, you pay back in kind for
perpetuity. However, if a part-time course requires time off
work, possibly for travel, you may have to accept a pro-rata
salary, and should assess whether this will continue to cover
your outgoings. Prospects.ac.uk
also lists scholarships and bursaries currently available,
which may prove a good guide for identifying the right course
in the first place.
But by far the most popular form of payment is a career development
loan (CDL), a form of deferred repayment. You can apply for
a loan of between £300 and £8,000 to cover up
to 80 per cent of your course and other costs such as books
(in theory you could calculate this to cover the remaining
20 per cent of your fees).
You make no repayments while you're studying, with interest
payments courtesy of the Department for Education and Skills
for up to one month after you've finished. CDLs are available
through three major banks: - Barclays, Co-operative and Royal
Bank of Scotland. You don't need a bank account with them
and you should shop around as interest rates and terms vary.
You may also be able to negotiate flexible terms of study
with your tutor, provided you complete assignments. This may
prove invaluable as a way of structuring your time. Postgraduate
study can be intellectually demanding, and so failure to do
this is an inevitable cause of the high attrition rates on
some courses
Useful sites:
www.lifelonglearning.co.uk
www.prospects.ac.uk
www.dfes.gov.uk
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