Getting a Student Loan? Get a Budget!

Far be it for me to suggest that a student association is unlikely to put out a press release saying everything was fine for students, but they are not exactly the best source for an unbiased opinion.

It is true that most people who study will end up with debt, unless your parents can cover the costs, which most cannot, or should not; without putting their own future at risk.

It’s also true that the student living allowance has not increased since I was a student, so has clearly lost ground with inflation.

However, there is no reason for anyone to end up over burdened with debt as a student (barring a student loan for the most part).

Tertiary study just, like everything else, requires some planning and a realistic expectation of expenses vs income.

For example, it’s cheaper to stay at home and study than move out of town.

It’s better to work part time, than rely all on a student loan, and the less you drink, the better of course.

Most students revel in their freedom and burn through money pretty fast, and then have to borrow to cover the debts they have already racked up.

Certainly, I don’t see how most students can afford to go into town with the costs of drinks, but they seem to do it.

The other thing is, is University really the best plan?  If you are just going to end up another unemployed arts major, hoping for a government job, there may be better options.  Trades pay very well, and will be more in demand over the coming years than another policy analyst.

So, in summary, like all things, choosing to go to university takes planning, and budgeting; will require sacrifice and could end up with some debt.  It’s not meant to be easy, but if you do end up better off, then it’s worth it, if you choose the right degree and plan appropriately.

BlogAlan Borthwick