University of Westminster Laura Wood, Financial Capability Adviser

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University of WestminsterLaura Wood, Financial
Capability Adviser

• Personal Finance Advice for Graduates

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Topics covered

• Repaying your student loan
• Graduate banking
• Dealing with debts
• Funding further study
• Other money matters
• Saving money

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Repaying your student loan

• Repayments start
• April 2009 (after completing course in summer
  2008) and earning at least 15,000 per year or
  more in the UK
• Repayments taken directly from your salary
• You can make additional extra repayments at any
  time
• You must notify the Student Loans Company (SLC)
  of any changes to your contact details

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Repaying your student loan
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Repaying your student loan

• Working or living abroad
• Loans are not taken automatically from your
  salary
• You must inform SLC and make arrangements to
  repay
• The amount you repay will depend on your earnings
  threshold for that country (may not be the same
  at 15,000 amount for the UK)

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Repaying your student loan

• Defaults on repayments
• Could face a penalty charge if you do not make
  repayments when due / fail to notify SLC of a
  change in your circumstances
• SLC can request a court order to recover the
  balance owed (this could then affect your credit
  rating for future)
• If you started your degree after Sept 2006 your
  loan / remainder of loan balance will be written
  off after 25 years

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Graduate banking

• Check your interest free overdraft!
• Consider switching to a Graduate Account
• Dont stick with same bank if there are better
  offers from different banks
• Check with www.moneyfacts.co.uk

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Graduate banking

• Use credit cards sensibly
• Useful for building up credit history offer
  insurance on some purchases
• Interest is usually charged
• Debt can spiral

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Your credit file

• Credit history is kept on file - borrowing
  activity, electoral roll etc
• Lenders check when you apply for credit
• Defaults are held on file for 6 years
• It is your right to access your file
• www.experian.co.uk or www.equifax.co.uk

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Dealing with debts

• Try to stick within your budget
• Dont ignore correspondence seek help and
  advice
• Citizens Advice Bureaux
• www.nationaldebtline.co.uk

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Funding further study

• Be realistic about your financial situation
  before you start your course
• Ensure you have enough funds to pay for your fees
  and living costs
• Consider a Professional Study Loan, or a Career
  Development Loan (up to 8,000) for Home/EU
  students
• Research charities / educational trusts for
  additional support
• www.egas-online.org.uk
• Check scholarships / sponsorship opportunities

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Other money matters

• Council tax now liable
• Amend standing orders / direct debits
• If not working can you claim benefits?
• If working check you are paying the right
  amount of Income tax and National Insurance
  details on HMRC website
• Check if you are on the right tax code if working

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Saving money

• Try to put some money aside if possible
• Useful to start saving for future (further study,
  holidays, mortgage)
• Consider paying into a private or work pension as
  soon as you can afford to

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Top tips

• Better to pay off credit card / store card debts
  than try to make extra repayments of student loan
• Choose your graduate account wisely!
• Dont bury your head in the sand if you are
  worried about your finances, or in debt
• Try to stick to a realistic budget

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Useful websites

• www.studentsupportdirect.co.uk
• www.hmrc.gov.uk
• www.jobcentreplus.gov.uk
• www.moneyfacts.co.uk
• www.moneymadeclear.fsa.gov.uk