How to manage your student loan and student budget

Money is something every single student has to think about and can be a huge factor in peoples’ decision of whether or not to even go to university. Student loans are there to help make our lives easier but there is still a lot of stress and anxiety surrounding the topic. I hope I can help to eliminate some of the confusion and worry surrounding finance, as well as provide some tips on how to make the money last.

Student loans are based on the income of your parents, so everyone gets a different amount – the idea is that your parents support you as much as they are able to, while the government cover the rest. It’s pretty easy to apply for and the government covers your course fees fully (with a few exceptions). This loan is paid directly to the university, so you don’t have to worry about that. They then calculate how much to give you for a maintenance loan which is paid straight to your bank account which can be used to fund food, rent and more sociable things like nights out. One thing to note is that you have to reapply for the loan every year – again, it’s super straightforward, but something worth being aware of.

Everyone budgets differently, there is no right way to go about it- it’s about whatever works for you; the tips are below are from my experience of loans and budgeting.

Building a budget

Keeping track of how much you spend is really important, particularly when you are getting your  money in three large chunks through the year. Personally, I allocate myself an amount to spend each month, and keep the rest in my savings account, which ensures that I’m spending money at the right pace. It can be pretty tempting to splash out a bit when your loan first arrives, but this helps to enforce a little self-control.

Within each month, it’s important to remember costs such as phone bills and rent/utilities as these will take a big chunk out of your money. Doing a weekly food shop helps, as you can predict how much you will likely spend on food. I quickly realised that I spend a similar amount each week, which makes predicting how much money you will have left over much easier. Once you’ve covered these important costs, you know what is left is for you to spend as you please.

Smart spending

Sometimes you’ve got to spend a little more to save money in the long run. A railcard has saved me at least double what it cost in the first place and lasts the whole three years of typical uni life. A good thing to do when you first start university is look at different banks and what they have to offer – most offer perks for opening a student bank account, such as a railcard, food discount cards, Amazon Prime or National Express discounts. Buying in bulk also saves money in the long run – this can be especially useful if you have housemates to share things with, but equally saves money if it’s just you. Things such as pasta, toilet paper, washing up liquid and even packs of chocolate bars work out way cheaper to buy a larger amount in one go, and these little bits of money you save here and there all add up.

You don't have to miss out

It can be pretty hard for some people to adapt to not just being able to ask their mum for £20 if they want to go to the pub. You'll see people going on nights out three days a week for the first month of term, and then living off beans on toast for the next two (don’t let that be you, even if you really love beans)

Food glorious food

Food can be a pretty daunting cost if you have never really been responsible for your own food shopping. Aldi and Lidl are my best friends when it comes to supermarkets; they’re so much cheaper than others and will save you so much money. I’m a sucker for the reduced aisle; most supermarkets reduce anything going off the next day – the later you go in the day, the better the reductions. You can get all sorts, and most of it can be frozen if you don’t want to eat it straight away.

Eating out is also a massive expense, and a trap that we all fall into. A good alternative is getting together with a group of friends and cooking a meal together (nothing like a Sunday roast) and splitting the cost. If you do feel the need for a takeaway, look out for smaller businesses which tend to have pretty good deals (shoutout to Crispy’s in Hyde Park).

University support

Being a student at a university does come with its benefits. You get access to a lot of things – which you might not be aware of, so take time to research the resources available to you for free. Most uni's give students access to Office software, and on my course we even have access to programmes such as Adobe Photoshop and Premiere Pro, which are pretty expensive to subscribe to, so you save some money there.

You can also get all sorts of financial support if you’re struggling – Leeds Beckett have offered bursaries such as the hardship fund, for student struggling under unforeseen circumstances, care leavers bursaries and others. You can find out more information about the type of bursaries available here. 

Overall, there’s lots you can do to save your money and to avoid having to struggle throughout your years at uni. It can take a little while and a lot of experimentation to figure out what works for you, but when you do, your bank account will thank you.