Student Debt

[confusedlady]

Hello there everyone

I'm not sure where I am supposed to post this so I hope this is the right forum. I really just need to tell someone about whats bothering me and get it all of my chest.

I am a student studying for a degree in Psychology and am in my final year. I am worried about the amount of debt I am accumulating: student loans, credit cards etc. Is anyone else here in the same situation? How do you feel about it all ? Any advise you can give me?

I am not employed at the moment. I quit my job the middle of last year to concentrate on my studies at university. For the first year I continued to work and study at university, and I got decent grades. The grades I received last year were for when I wasnt working and I was amazed at the difference. Theres a eight point difference which could mean getting a high second or a first class degree. So I have decided to not work in my final year of study and try and go for a first.

Its important to me that I get a good degree and I am the first one in my family too go to university so they are all counting on me too do well as well. I will never get a chance to do this again. I dont want to mess it up by working. However the pressure and constant reminders in the post are making me depressed. Pretty soon I will have to make a decison.

Do I leave university for a year work for abit to ease the pressure and then go back? The only problem with this avenue of escape is that I am worried that once I am out there working full-time again and getting a decent wage I will prefer the money over my studies. I would like to stay and continue to the finish line.

Any other students suffering the same agonies ?

[bambam]

Hiya,

Im thinking of going to uni next year do a degree in counselling. It's going to take me 3 years full time or 7 part time. Financially I can not afford to pay for course up front and do it part time,(and also being 40 i think its silly to get my degree when im 47),so Im going to leave work and take out loans............at the end Im gona owe way over £20,000. What a nightmare!

Any advice would be greatfully accepted.

Sorry Ive no words of wisdom for you...xx

[buttons]

..........

[confusedlady]

Thanks for the replys anyway! Its nice to know I am not alone. The Student Loan I can sort out, they will only ask for repayments after I am earning more then 15, 000. but the bank and its credit cards, well don't know about them, I dont think they will wait. You are right the longer I leave it the more interest I pile on. I don't want to get bad credit-rating but looks like this will happen anyway. A few people who I have spoken too about it tell me they think I should just continue my studies and sort the debt after my degree. There is only nine months left of my programme after all. Alot can happen in nine months though and I dont want to jeopardise myself. I think I am not only one in this situation. But most likely will go for it and try to finish.

[bambam]

confused i think you should finish............9 months till you finish yes a lot can happen.................lottery win?
sorry just playing, good luck.........xxx

[confusedlady]

wow so there are no other students who are facing this problem ? Surely I am not the only one ?

Would love to hear from anyone who is a student at University? What there studying ? Where ? How are they finding it ? Whether its living up too their expectations or not ? Perhaps we could have a forum for the students ?

[cherryred]

wow so there are no other students who are facing this problem ? Surely I am not the only one ?

Would love to hear from anyone who is a student at University? What there studying ? Where ? How are they finding it ? Whether its living up too their expectations or not ? Perhaps we could have a forum for the students ?

I'm in college now! I've just started at a very good school and my mother's happily paying for it. The problem is that I haven't felt like myself since moving into my dorm. . . I'm an entirely different person on this campus than I am everywhere else. I'm not shy or anything; I'm usually the type to make friends wherever I go, which I have in a sense. I just feel like someone who isn't me. What it comes down to is being away from my boyfriend and not being able to do the things I want, when I want - such is the nature of life on campus sans car.

Anyway, I've been thinking of transferring to a school that's closer to my actual home (and therefore my boyfriend, car, favorite yoga studio, etc), but my mother's refusing to support the decision if I go there. I'll have to pay for it entirely on my own, which scares me since I can't imagine paying off 4 years of school considering how little money I have now.

In other words, I know how you feel. Arghhh!

But good luck to you!

(Side note: I'm a psych major too!)

[SM]

It's difficult. You want to better yourself, but it means having to pay for a long time. It kinda makes you wonder what the point is.

Whatever happens, keep control of your finances. If you cannot pay it back, don't sell your soul to Debt Management Companies or get sucked into consolidation loans. Just keep talking to your creditors and come to an arrangment with them. As soon as people start offering you IVA's and bankruptcy advice, you know that you are swimming with the sharks.

Focus on quality of life and the long-term. Debts are such a killer if you end up having no disposable income each month.

Good luck

[noodles]

There should be a law preventing students from having credit cards Talk about giving those with nothing a rope to hang emselves with

I totally know where you're coming from. I worked throughout my degree cause i had to and still came out with loads of debt. That was bank and loan debt, cant think how S*** it wouldv been to have credit card debt as well.

Im presuming you're renting accommodation and have bills and stuff? Could you work but do less hours than last time - a kind of compromise? You've not got long to go, it would be a shame to take time out?

If you contact your creidt card company they can freeze your card so that its fixed at present amount (not continuing to add interest). They did it for a friend of mine. She actually went to the CAB who gave her some good tips on how to keep on top of things and how to wangle low re-payments till her situation improved. Maybe you could get some advice too?

[Curvey_Brunette]

Hi confusedlady

First of all student loans:

You don't have to pay them back until you're in full time employment and then it's a percentage of your earnings.

So that isn't really an issue.

As for other debt, such as loans, over drafts and credit cards, well, cut your debit and credit card up! Then hand back your cheque book to your bank.

This will stop you getting into more debt and any payments you're making to clear the debts will continue.

If you're suffering excessive financial hardship due to your circumstances and not reckless spending, have a word with your course tutors or your personal tutor. If it looks like you may have to drop out of the course due to finances, some universities have a system where they can give loans or a 'grant' to help you out, often this is only a maximum of £300 to £500 and it's a one off payment. It's not much I know but every penny helps.

If you find you have to work, they may also be able to arrange your time table so your lectures and seminars are all together over a couple of days instead of spread out over the week, so you'll have 2 days worth of lectures and seminars and 5 days 'free' to work and study.

One thing I feel I must point out is that a psychology degree is no good without a post graduate degree also as it doesn't actually qualify you to do anything.

But the good news is most psychology post-grad degrees are work place centred degrees. This means you'll be working and drawing a wage while you do your post-grad degree.

And finally, QUIT WORRYING!!!!

It's only an exam and you'll get 2 chances, if you fail the first time it's not the end of the world, taking to your tutors and your personal tutor will help you concentrate on the area's you're not sure on.

The only person putting you under pressure is you, so stop it

Try to relax, enjoy your time at Uni and think about what you're going to do AFTER you've got the bits of paper.

[mogadishu]

It's a monthly instalment once you start making 17k.

[Curvey_Brunette]

It's a monthly instalment once you start making 17k.

I thought it was £15k as confused said in a later post???

When did they change that one?

[monosodium]

Thanks for the replys anyway! Its nice to know I am not alone. The Student Loan I can sort out, they will only ask for repayments after I am earning more then 15, 000. but the bank and its credit cards, well don't know about them, I dont think they will wait. You are right the longer I leave it the more interest I pile on. I don't want to get bad credit-rating but looks like this will happen anyway. A few people who I have spoken too about it tell me they think I should just continue my studies and sort the debt after my degree. There is only nine months left of my programme after all. Alot can happen in nine months though and I dont want to jeopardise myself. I think I am not only one in this situation. But most likely will go for it and try to finish.

I was in a similar position - unfortunately my position was if anything a little worse. I ended up having to up the hours in my job until it got to a point where I couldn't complete my work any more and I was sleeping through lectures.

Because I had others depending on me I had to choose remaining solvent over completing my course and in many ways I regret that. If you're in a position where you have a choice then definitely don't drop your course at this stage. it depends on how much you can live without your credit cards.

If you *can* survive for 9 months without them then the best thing you can do is get a new credit card on a 0% balance transfer rate - that won't completely remove the problem, but it will give you a 6-9 month stop-gap where at least you won't owe more interest. Check www.fool.co.uk for the current deals on credit cards, and if necessary then look at unsecured loans for debt consolidation (if you do this then cancel all your credit cards, except one which is for absolute emergencies only).

Also talk to your Student Union. They have a fund and access to some university funds where if you're really in the shite they may be able to do you an interest free loan which will be enough to cover the minimum payments on your bank charges. Now is a good time to do this.

Another option (which you should talk to your course leader about) is taking a year out. Take a job - take two if you have to in order to clear as much debt as you can between now and next september, also if you go this route - apply next year to be a warden at your halls of residence, often this means you have some light duties (like monitoring the state of the buildings) in return for free or much reduced rent.

One last option if you feel you don't want to stop going to uni for 9 months or so is to switch to part time for the last year, which would mean an extra year at uni as well, but you'd have more time to concentrate on your studies, be able to work and there would be less work due at any one time.

My one piece of advice is to act today, not tomorrow, but today. I left it and tomorrow became tomorrow, which led into next week, then it was christmas and I didn't want to think about it and then and then... By which time it was too late. Put in a call to your SU for an appointment (they're confidential) and sit down and work out where your money has gone, how much you need to pay to keep a roof over your head and to keep the bank at bay. Make sure you know exactly how much you owe and to whom and how little you can get away with paying them.

Definitely don't throw away the work you've done on your course even if you plan never to use the qualification ever again!

Does that help?

[monosodium]

It's a monthly instalment once you start making 17k.

It depends on when you took it out. Each year seems to be different in how much you pay and when.

My wife and I were all or nothing, after a ceratin boundary, but my brothers wife, had to start paying a certain amount of it back after 13k a year although it wasn't very much.

[mogadishu]

it doesn't seem much at all, but you can't make the rules when you're in debt. and these days you can't get an education without it.