 REAL SOLUTIONS TO REAL-WORLD PROBLEMS No two words have sounded sweeter to the ears of a debt-ridden student than “financial advice”. Problem is students think they could immediately go on a spending spree after their application for a student loan got accepted. It's the worst that could happen: you spending all your money at just time the when the Student Loans Company decides it wants to back you up. A little spending here and there is okay. But don't overdo it, or else you might find yourself buried in an even deeper hole than before. So you need help getting out of your financial woes? You have come to the right place. Student Finance.org is here to help. Financial Advice #1: Manage your finances like a pro The secret to a smooth and debt-free life as a UK college student is by managing your finances like an adult. When you apply for a student loan, you are borrowing money and should be old enough to understand the benefits and risks of such a transaction. We're not saying you shouldn't apply for a student loan. We're saying you should be adult about it, and adopt a realistic mindframe of saving as much money as you can so you could pay it back easily when the time comes. Student loans are paid in installments. So good budgeting skills are essential. When you get your student loan money for the first time, it seems like such a big amount. But any adult will tell you to spend it wisely. First thing you should do is set aside an ample amount for necessities—food, rent, utility bills, etc. What's left of it you could budget some more to accommodate your daily spending. Some do it the other way around: they set everything aside and just take whatever amount they need at the moment. While this is okay, it's easy to forget how much you spent when you're still doing it. We recommend that you play it safe. Set aside what you need for necessities as soon as you get the money. Financial Advice #2: Beware of credit cards You should be wary about credit cards. Fact is credit cards are a great way to prepare you, the college student, for the real world. If used wisely, a simple credit card can teach you the principles of proper budgeting and as well as how to spend your money effectively. But anyone will tell you a credit card is sharper than a double-edged weapon. It can also leave you buried in debt overnight. As a college student, you should stay away from credit cards altogether. In addition, don't be fooled by the term “student loan”. A student loan isn't a “loan for minors” or a “make-believe loan”—it is s real loan in every aspect of the word. As the student who applied for it, you take full responsibility of paying it back in time. Sometimes parents and spouses acts as sponsors for the student's education. But they are never liable to pay back what you borrowed. Learn to take responsibility especially if it has something to do with student loan money. For more information about paying back your student loans, read the article “Repaying your UK student loan”. Financial Advice #3: Don't miss out on your repayments Missing repayments, or not paying at all, can leave a tremendous blow on your credit record. When you start work, you owe it to yourself to stop depending on your parents' support and start living off your own money. This is where credit records come in. Not paying back your student loan will leave you with a bad credit record, and in turn it would be more difficult for you to find a bank who'd loan you money when you need it. In fact it's going to affect all your future loans. So take your student loan repayments seriously. If you're changing jobs or leaving the country for a while, secure the necessary forms so you could keep track of your records when you come back. Since the Student Loans Company has the authority to impose penalties on your credit record, you could end up paying a lot more than what you expected when you were still studying. In any case you have to pay your student loan one way or another. So by missing out on your repayments you are only making it harder for yourself. Financial Advice #4: Remember these general tips
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