Sixth-form students might have their heads still stuck in A-level mode, but they have just two weeks left to send in their student finance application forms or risk starting university seriously short of money.
Prospective undergraduates need to fill in their loan application forms before 29 June to make sure the loan is paid into their bank accounts for their first day at college. Otherwise, they could end up waiting nearly a month for the cash to appear. Exams or no, it's time to get organised.
Students only need to complete one form to apply for both their tuition fee loan and the means-tested living cost loan. You can apply online at www.direct.gov.uk (click on 'Education and Learning'), or contact your local education authority for a Form PN1.
The form will ask you about your parents' income so that your lending can be assessed. You will also be asked whether or not you wish to disclose this information to your university - if you say yes, your university will also assess your financial needs and see if you are eligible for any student bursaries it might offer.
The Department for Education and Skills is launching an online planner to help future students keep ahead of important deadlines, so they know what forms they need to send when, and to whom. The 'Countdown to Uni' went live last Thursday on www.direct.gov.uk/countdowntouni, and counts down the months until undergraduates move on to campus.
But, if you still end up missing the deadline and are the only fresher staying in at the weekend because you've got no money, all is not lost. Every university has an Access to Learning Fund, which helps students when they unexpectedly run out of cash.
'Don't panic if your loan doesn't arrive in time,' says David Malcolm, student finance policy officer at the National Union of Students. 'Explain your situation to the student support office, along with any letters that show you have applied for your loan and it has been delayed. They should be able to lend you money for a couple of weeks until it comes through. Depending on your circumstances, it may even qualify as hardship money, which means you wouldn't have to pay it back.'
If you are completely loanless, a student overdraft should be your last resort. Lisa Taylor from Moneyfacts.co.uk says: 'The cheapest way to get around waiting for your loan to arrive is to borrow from the Bank of Mum and Dad, but if you can't, then the best way to finance short-term living is via your overdraft. If you do end up dipping into your overdraft, it will at least automatically clear by the time your student loan is paid into your account. It's certainly not ideal, but using your overdraft is better than using a credit card, which will charge you interest.'
All student current accounts will offer an interest-free overdraft. Banks are expected to launch their new student accounts for this year's intake in mid-July; most of them usually offer an overdraft of about £1,000 for first-year students.
'Check your overdraft limit carefully,' Taylor warns. 'Don't assume you are entitled to [the full amount] - some banks will say you can get "up to" £1,000 interest free in your overdraft but, depending on your credit history, you could end up with a smaller overdraft than you thought.'Labels: academy awards, career training, financial aid, free college, free education, high school, scholarship, student loans, study abroad |
