Student savvy: Smart money moves for students
August 22, 2024
As the new academic year approaches, many students and their families are facing the financial challenges of higher education. To support students to make informed decisions about their finances, we have gathered some top tips to help navigate student loans, manage their budget, and make smart financial choices.
Assess your expenses and understand your options
There are many costs that come with enrolling in higher education. You may have to cover tuition fees, accommodation, books, and travel expenses to name a few. It is important that you have a clear picture of what expenses you will have while you are studying.
Next you should consider what options are available to you. You may be entitled to financial aid such as grants, bursaries and scholarship schemes. The HEA (Higher Education Authority) and SUSI (Student Universal Support Ireland), offer funding to eligible students in approved courses at PLC, undergraduate and postgraduate levels in Ireland.
You may look to get a part-time job while studying to cover your expenses or look to cover them with a loan. Make sure to research and understand the different options available to you before taking out a loan.
If you have to borrow, borrow responsibly
If you have to take out a student loan, try to borrow only what you need. It’s easy to be tempted by larger loan amounts, but remember, every euro borrowed has to be paid back with interest. Research and compare interest rates and repayment terms between different loan providers. You can use the CCPC loan comparison tool to help you with this. With a fixed-rate loan, your interest rate and monthly payments stay the same, whereas variable rates can change over time.
Calculate the total cost of the loan over its entire term. A lower monthly payment might seem like a good idea but could mean paying more in interest in the long term.
Repayment strategies
Once you have your loan, it’s time to focus on repaying.
- Stay organised: Keep track of all your loans, their balances, interest rates, and repayment schedules.
- Make a budget: Make a budget to keep track of all your income and expenses. This will help you avoid overspending and potentially not being able to repay your loan.
- Make extra payments: Whenever possible, make extra payments towards your loan principal to reduce the overall interest and shorten the repayment period.
Support and resources
If you’re finding it difficult to keep up with your loan repayments or you’re in arrears, avoid burying your head in the sand and don’t be afraid to ask for help. Whether you are living at home or away from home, you can speak to your bank or the student welfare officer at your college. It’s important to take necessary steps to try and get your finances back on track and protect your credit rating.
Speak to your loan provider / banking institution as soon as you can and agree on a realistic and affordable offer you can stick to, then start making your repayments.
If you’re unhappy with the solution offered by the lender or you need help approaching them, you can contact MABS.
You can also check our Money Hub for budgeting tips, more information on loans and comparison tools.
Return to News