Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
University: A Course in Personal Finance > NetSparsh - Viral Content you Love & Share

University: A Course in Personal Finance

Recent findings from the Educational Policy Institute indicated that the UK is the third most expensive place in the world to go to university. Combine this with figures from the Prudential, showing that a third of university students have considered abandoning their studies due to the financial strain they have encountered, and it is not surprising that many prospective students are finding the need to seriously think through the merits of going to University.

Whilst it is true that there are currently loans available from both the government and from banks that are designed to see students through their period of studies, for many this will mean emerging into their adult life with mountains of debt. Barclays Bank has stated it believes that once top-up fees are introduced it will cost about £33,000 to put a child through university in England and Wales. At a time when the number of students has greatly increased and the number of high paid graduate careers appears to have diminished, students now have to factor in the cost of living when making the important decision of where to study. In an article by the Scotland On Sunday, the experiences of a university student from Glasgow show that the question of finance already weighs heavy for some students in their choices of where, or even if, they can study. Moving out of the parental home to take full advantage of university life may become less of an option for students as costs increase and financial assistance decreases.

The president of the National Union of Students in Scotland, Melanie Ward, said: "I think most students underestimate the amount of debt they will leave university with, which will be above £13,000."

With graduates needing to earn £22,000 a year in order to pay off anything more than just the interest on their student loans, many people are in their 30s or even 40s before their debt is fully cleared.

Graduates are also finding that they have to make tough decisions as soon as they complete their courses. With banks, building societies, credit card companies, and other private sector lenders requiring the sums borrowed to be repaid. The immediate question of, "Do I build on the knowledge, work experience and internships, that I've had over the last few years and pursue my dream career, or does the chasing of the perfect job I've been working towards for years, have to take second place to getting back into the black?", is now an all too intrusive reality for many.

Some students are finding it so difficult to make ends meet that they are trying to seek alternative means of resolving their debt. Checkmyfile.com has shown that that the number of students declaring themselves bankrupt tripled in 2004. Another method of reducing graduate debt is getting the loans written off through undergraduate bursary programmes by the military or teacher training, in return for agreeing to a placement period following graduation. There are however some potentially serious drawbacks to both types of schemes. These include possible damage to future career prospects or compulsory placement period in a career which the graduate does not want to proceed with long-term.

All is not doom and gloom however, with university authorities and the Students' Union offering advice at college, and after graduation. Public sector organisations like the Citizens Advice Bureau can provide advice if real difficulties occur. Speaking directly to your lenders can often resolve problems. Switching between loans and credit cards is a good way to help reduce interest payments. Financial websites like Moneynet can provide a useful source of information by enabling students and graduates to see which loan or credit card provider is currently offering the best deal and 0% introductory rate.

It seems budgeting and hard decisions are required by all potential students these days, with a degree in personal finance a desirable pre-requisite before starting actual studies.

Richard works in Edinburgh for a media company, occasionally writing for the personal finance blog Cashzilla, and drinking too much coffee.

In The News:


USA TODAY

Pete the Planner: Road to early retirement may be bumpy - USA Today
USA TODAY
You will need some luck to ensure financial success in early retirement.

and more »

USA TODAY

Personal finance: 15 smart things you can do with $1000 right now
USA TODAY
A thousand dollars might be pocket change or a rounding error to multimillionaires and billionaires, but it's a meaningful sum for the rest of us. Any amount of money that we can save can be put to good use. Here are 15 examples of smart things you can ...


Unexpected Costco bargains and whether a millionaire daughter ...
MarketWatch
My daughter earned millions at Google, but her boyfriend has student debt — should she get a prenup? This father wonders whether his wealthy, smart daughter ...

and more »

Chicago Tribune

Personal finance experts reveal their favorite money apps
Chicago Tribune
Both David Bach, nine-time New York Times best-selling author of books such as Smart Couples Finish Rich, and J Money a personal-finance blogger at Budgets Are Sexy, are fans of this app. “You won't get rich off of this, but it's a great way to dip ...


Benzinga

In Its 10th Year, Personal Finance App Mint Is Investing In AI, Data ...
Benzinga
Mint, the personal finance app owned by Intuit Inc. (NASDAQ: INTU), could be transformed by artificial intelligence and machine learning. That's according to ...

and more »

After painful personal loss, managing money looms as key challenge
Minneapolis Star Tribune
A thoughtful personal finance guide for recently widowed or divorced women is "Money Confidence: Smart Financial Moves for Newly Single Women," by Kerry Hannon. Hannon is passionate about helping people gain control of their finances and her book is ...


Personal finance seen as big gap in education - Lowell Sun Online
Lowell Sun
BOSTON -- Eric Swansburg, a business teacher at King Philip Regional High School, passed a 100-question test around his class last week to gauge students' ...

and more »

USA TODAY

How to invest without losing money
USA TODAY
... bonds offer generally stable returns with very limited risk, and in some cases no risk at all. The problem is that safety comes with a price. CDs, to examine one cash equivalent, constitute an agreement in which you give your money to a financial ...


Daily Nation

PERSONAL FINANCE: The debt catch up
Daily Nation
The bank calculated this regardless of her other financial obligations. Susan now realises that to comfortably afford the loan, she needs to be earning 30 per cent more than she is now. She needs her income to increase just to afford a loan that she ...


Forbes

How To Stop Boring Students When Teaching Personal Finance
Forbes
My mission for the past seven years has been to help students and recent graduates develop healthy money habits and build the foundation for a lifetime of financial wellness. As the co-founder of the Harvard University Personal Financial Management ...

Google News

Succession Planning

Have you ever thought about what you are going to... Read More

Ways to Save Energy and Slash Electricity Bills

1. Lighting & Light Bulbs Install low energy light... Read More

Why Live Frugally

What is it about being frugal, why do it at... Read More

Photo Checks ? A Great Alternative in Checking

It's the little things in life that make it interesting.... Read More

Budgeting: A Tough Love Way to Handle Your Household Budget

Developing and living by a household budget is by far... Read More

Kundalini Lessons - Money

I've been going through and interesting growth period lately that... Read More

5 Steps to Healthy Spending Habits

Next to our physical health most of us are primarily... Read More

A Quck Lesson in Saving Money

Did you have a piggy bank when you were a... Read More

Financing Collectibles for Fun and Profit

With the advent of the internet and especially auction services... Read More

Budgeting is Bothersome

It doesn't take much for you to get behind on... Read More

Whats The Truth Behind Your Finances?

Between 15 - 20% of people in our country (UK)... Read More

Avoiding A Nightmare On Renovation Street

You've decided you want a bigger, better and more desirable... Read More

Budgeting the Key to being Financially Stable

Single Mother's in need of Financial GuidanceBudgeting is key to... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

Safely Save for Your Childs University Studies Using An Education IRA!

This investment retirement account (IRA) is useful to you as... Read More

Saving Money - Are You Doing Enough?

It is estimated that we, as consumers, waste an average... Read More

Financial Fitness - Are You Exercising the Right Muscles to become Financially Fit?

Are your financial muscles well toned and healthy or flabby... Read More

How Check 21 Affects You

The Check 21 Law is the new federal law for... Read More

Is There A Retirement Crisis?

When people speak about the increasing age expectancies, they generally... Read More

Retirement Income Needs---Less Than You Think?

It is widely written that you need 75% of your... Read More

Roth IRA Contributions - IRS Rules

Confused about whether you can contribute to a Roth IRA?... Read More

7 Simple Ways To Save Money

Each of us knows how to spend money, but do... Read More

Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

We have heard a lot about consumers' personal information getting... Read More

Financial Readiness: Preparing for BRAC (Base Realignment And Closing)

The recommendations for military base closings have been released and... Read More

Accessing Funds You Never Knew You Had- Household Utilities and Mortgage Expense Reduction Plan

For most of us the process of getting out of... Read More