Moving away to university is an extremely exciting time. Out on your own for the first time, you finally have total control and responsibility over your own life, education, health, and your finances.
However, it is the latter that seems to spring up the most problems. The 2017 National Student Money Survey only went to support this, finding that:
- 84% of students worry about making ends meet
- 66% say their maintenance loan is not enough to survive on
- 57% of students think student finance is unfair
- 71% are still relying on money from their parents for everyday living costs
For many young people, this will be the first time they have ever had to struggle with money and deal with living on a budget themselves.
And, living with other financially troubled students, there are few people with any spare money to lend or help cover your share of the rent when funds are low.
Whilst some universities offer ‘hardship loans’ and grants to students who can prove their significant financial hardship, it’s unlikely your situation will be deemed drastic enough, or all that different than that of your peers.
Student living is hard. If you’re studying full-time whilst trying to afford living costs, rent, food, books and travel, making your money stretch until your next pay cheque comes through can seem impossible.
With university fees and accommodation costs steeply on the rise, and no increase in student loans, students with little to nothing in their savings accounts are turning to alternative methods to fund their years of study.
Working while at university
It isn’t uncommon for students to work through their university holidays. Many finding full-time employment during the summer and Christmas break in bars and restaurants.
This arrangement means employers get an influx of temporary staff during the busiest points in the year, and the students have the chance to fill up their savings account before the next term starts.
But, many find that it can be tempting to dip into their earnings to enjoy themselves during the break. After all, regular income is a rarity in student life, and summer and Christmas are also the two most expensive times of the year.
Or, upon returning to university, they may find that making the money last the term is more difficult than it sounds. The best thing to do is to put a strict budget in place, both while working and when you return; giving yourself a monthly allowance for unnecessary treats and putting everything you don’t use away into your savings account.
Adding a part time job to the mix whilst studying may also help your financial situation. A lot of students opt for weekend and evening work to fit around lectures. This can be a good option during your first and second years but, as your dissertation draws nearer, you may find you no longer have the time or concentration for a part-time job.
Some universities have online job boards or student advice centres which offer student-centred or odd jobs to those trying to make money in their free time.
But, when sudden expenses arise, you may be in need of money urgently.
Perhaps you need to put a deposit down on student accommodation before someone else takes it, or you need emergency car repairs to get around your university city. If there’s not enough in your savings account, you may be left unsure of what you can do.
This is when many at college or university turn to student-specific payday loans to help cover the costs.
What are student payday loans?
As a student, you may not feel you’re eligible for a short-term loan, as you don’t have a typical ‘wage’ as such. Of course, you will need to be a student and over 18 years of age to apply but, as long as you have a steady income over a certain threshold, you may be able to access a student short-term loan.
You’ll need to show proof of income so the lender can see you will be able to repay the money, otherwise they may not lend to you as it would be irresponsible. This income could be from a part time job or even your student finance.
You will also need to have UK citizenship or the legal right to reside in the UK, as well as a bank account for the loan to be paid into and repayments to be paid from.
Student payday loans allow you to borrow money for a few months to help supplement your income and help you balance out your budget. They are usually for between £500 to £2,000.
Higher Approval Rates
It is also a common problem for students applying for finance that they have not yet had the chance to build up any kind of credit. As you may know, this is often treated the same as bad credit, so it can make it hard for them to be accepted for a loan.
This type of payday loan, however, is specifically catered for students. As they tend to be for smaller sums of money over short periods of time, the risk to the loan provider is much lower, which means they have higher approval rates than many other short-term loans.
They also provide fast finance, sometimes even on the same day as your application, making them great for sudden, urgent expenses.
Of course, you should continue to learn how to manage your finances effectively in the long run. But, should disaster strike, student payday loans may be able to help you out of a tight position.
If you feel confident that you would be able to pay back a short-term loan successfully, please click for our short-term student loan application.