Money B

Time for another Money B! 

Be ready to apply for your funding as soon as possible if you are starting a new Higher Education course in September 2016.

We are hoping Student Finance England will open for business this week for any 2016 Cohort student's applications.

But depending on where you live keep your eye on all the funder websites for their go ahead on when to apply.

Don't worry that you are not completely sure where you will be going to study yet. Just put the most likely institution on your application, this can be changed later if necessary. Changes happens all the time so its not a problem.

Scotland - SAAS
Wales - SFWales
Northern Ireland - SFNI

NHS Courses - NHSBSA


Be the first to apply!

Previous Study Rules

Higher Education Undergraduate Previous Study Rules for English Domiciled 2016 Cohort Students

Levitate Student: Council Tax, Rent and moral dilemma

Students, Council Tax and Rent

We are great fans of the Money Saving Expert .....but sometimes we don’t agree with all their advice to students.

This is the case with their article on Students and Council Tax where they suggest students who live in a property with a non-student might have a “moral dilemma” and go on to make suggestion of how much contribution a student should make to a bill they are not legally liable to pay.

So let us put our context on the matter of Rent, Council Tax and entitlement to welfare benefits for these expenses.

As you know Levitate is all about Rights and Responsibilities and it is important to understand them.

So let’s start with....

Rent

What is rent? Rent is a payment (of money or other means as agreed) to use a property.

What is included in the rent depends on the tenancy agreement whether that is in writing or a verbal agreement.

For detailed information about rent and tenancy agreements we recommend www.shelter.org.uk

Help to pay rent

Housing Benefit is to help people to pay their housing costs. Claimants under pension credit age must have savings under prescribed level, have the right to reside in UK and pass a habitual residence test and crucially for most students be regarded as liable to pay rent for the property.

Housing Benefit and Students

Most full-time Higher Education students are not entitled to claim housing benefit. There are some exceptions for example some lone parents, student couples with children and some disabled students may be eligible for help toward their rent (seek advice).

This may seem strange when for many, student income is very low. They way the government get around that problem is to define in the regulations who is regarded as “liable to make payments in respect of a dwelling” for the purposes of housing benefit entitlement – and guess what? - Full-time Students are not regarded as eligible to pay rent.....even though of course they do.

A non-student (living in a shared property with students), could apply for Housing Benefit help to pay their rent liability if they are not working or on low income.

If awarded Housing Benefit would the non-student have a moral dilemma to share this to help their student housemates pay their rent.....? We don’t think so...it’s the non-student Right to financial help not the students. All the tenants have a Responsibility to pay their rent but it could be that only the non-student has the Right to claim Housing Benefit.

Council Tax

What is Council Tax - in simple terms it is a local tax set and administered by a local authority. The tax has two elements; half is for the people based on two adults sharing; and half is for the property. There is one bill for each separate residence on the Valuation Office Agency valuation list and the charge falls into one of 8 or 9 valuation bands. The local authority decides what charge applies to each band. The local authority will outline to residents what it has spent the Council Tax on each year. Local authority websites are often a good source of information about Council Tax

Some residences are exempt from Council Tax liability and this includes hall of residence and properties with only full-time students living in them. Universities will issue you with Council Tax exemption certificates or tell you how to inform the local authority that you are exempt - check the university/college website for information.

It’s more complex than this though so always seek advice if you are not sure or are told you are liable for the bill.

Help to pay Council Tax

Local authorities are responsible for running their own Council Tax Support schemes to help people on low income with their Council Tax bills. Again local authority websites are a useful source of information. The schemes vary across local authority areas and can change from year to year.

Student income is very low and therefore on the maths alone many could be eligible for Council Tax Support. The government make it easier for everyone though by making most full-time students exempt from paying council tax  - less hassle all round. So it’s a student’s Right not to pay council tax....No moral dilemma here!

When students live with non-students (or even a part-time student), the residence is not exempt so someone will be liable for the council tax. Any non-student living with just all students could apply to the local authority for a discount (e.g. 25% discount on the bill) and if their income is low help to pay in the form of council tax support.

If the non-student is also exempt from paying council tax for other reasons, then, the discount on the bill would be 50%. Who would be liable to pay the bill can be complex and depends on a hierarchy of liability – seek advice if you are not sure.

A student may have to pay the council tax even though they are disregarded when calculating the discount for the bill. This can happen to a student who is the only tenant or who owns their own home but lives with an adult who is not a student.

For example, a mum who is a full-time student, owns her own home and her adult (not in education) son lives at home with her. The property is not exempt, mum as a full-time student is disregarded so the bill is discounted by 25%, but as she is the owner occupier she is liable for the bill. We would agree that in these circumstances there is a bit of a moral dilemma regarding the son helping mum out with the bills.

It can be complex too in household where non-student does not have recourse to public funds.

From a financially capable perspective we would recommend that you don’t pay bills you are not liable for. If you are unsure about whether or not you are liable for a bill then always seek advice from you University Money Adviser or community advice such as Citizens Advice.

Levitate Student: Money Tips

Money Tips

Huge thank you to the fabulous students and graduates who submitted a Money Tip this week. 

Picture of student money tips

Suffice to say that most students we know manage their money well and wisely. Many maximise their student income and help from family by working, saving and sensible budgeting.

It's no mean feat budgeting on the periodic student income, planning ahead for all outgoings. For many students money management is a new experience, lots of first time expenditure like rent, phone and utility bills. It can be a challenge planning for the expected and more so the unexpected. 

Take a look at this useful budgeting tool provided by National Debtline

Many full-time Higher Education students can secure an interest free overdraft from the high street banks. When used sensibly this can serve as an excellent safety net on a bank account to help navigate through the cashflow peaks and troughs.

Be wise with the overdraft facility though - it can be tempting to over spend. You need to be honest with yourself about how smart you will be in using the available funds. The interest free limit though can provide a means for you to avoid interest bearing borrowing such as credit cards, store cards, personal loans, and short term high cost credit like Pay Day Loans..

Picture of student money tips

Many banks offer graduate accounts that give you a limited time to pay any residual overdraft back when your course ends.

Some students might want to use the interest free facility to put into interest bearing savings account such as ISA

But as bank interests rates are low and many students do not pay tax on bank accounts anyway (See tax form R85). It may not be safer to use the interest free buffer to help avoid the need for costly interest bearing borrowing. 

We like the Money Saving Expert Guide to Student Bank Accounts

A note of caution though sometimes students take more than one student account and find it difficult to manage. Taking more than one account is not against the law but might be contrary to the account terms and conditions so this should always be checked. Also it is important that bank accounts don't become dormant (not actively used) as banks may close them and ask for any overdraft to be paid back immediately.

Similarly, sometimes students leave higher education without graduating and find that as they are no longer a student that the bank would like the overdraft paying back right away. This can come as a shock and throw you into financial difficulties.

Always seek advice if you are struggling with money matters - your university may offer Money Advice, or look on our Know Where to Look  page for trusted debt advice agencies.

Student Money Tip 6 - Rebekah says.......

Down but not out...... a student's account of their first struggle with mental health problems.

National Student Money Week 2016 - Mental Health

I didn’t really notice it starting – the depression sort of crept up on me......

I had found my A’level year stressful, cramming, literally tearing my hair out at times (I realise there is a name for that now, trichotillomania but then I just did it to help calm the stresses).

Once it was all over I got my university place, scraping in through Clearing, but happy as the first girl in my family ever to achieve that. I was naive when going off to my city of study, but that sort of got me through all the changes. It was exciting and I was curious what this new life might hold. I covered my little bald patch and got stuck in :).

I left my long term boyfriend behind, he went to a different uni, we had been all grown up about that choice. We hoped we could make it work long distance.

I didn’t get a place in halls of residence so lived in private rented from year 1. By the February I had moved in to a little flat with my new found bestie from my course. Life was a laugh, we were learning life together & sometimes the hard way  how to be independent. Our accents, mine Northern hers Welsh would combine into the most delightful blend. Some nights we would laugh so hard it hurt and we didn’t even know why we were laughing. It was great being a student....

I didn’t get to go home much, I couldn’t afford it. My parents couldn't afford to help me with money so I was on a very tight budget. When I did make it home, there were sometimes troubles there that worried me. In the summer vacation after my first year my mum fell poorly and my dad struggled to cope and I seemed to suffer the brunt of his frustrations. Perhaps he didn’t like that his girl was grown up. There was a blow up fight and dad threw me out, my boyfriend came to rescue me and I spent the summer living with a relative. I didn’t realise it but I was slipping along that sliding scale into the grey zone....

My relationship didn’t make it through the summer. I was shouting at my boyfriend in the street about why it wasn’t working out for us, he didn’t understand, he thought it was, I wasn’t making sense. My arguments were going round and round, the ends not meeting to tie into a neat conclusion. Inside I wasn’t convinced by my own fervour, but something was making me sad and it had to be him right??

We split up and both headed back to university. I was numb, missed him but was convince it was for the best, the long distance had been stressing me. My housemate had split up with her long term boyfriend too – high five!! We are free, let’s have fun!!

Somehow though, I wasn’t feeling in the mood for fun. We started the year in a new rented place, not the best but it was cheap. We were heavily involved in a uni society and that kept us busy after lectures and some days were long, too long. Organising events around my study, living further out of town, cycling back and forth, I was exhausted.

At times I would feel like an observer....not involved in what was happening around me. Inside I was losing motivation, going to lectures was a chore, and I found it easy to persuade myself to not bother. I always seemed to be run down, getting viruses and infections so easily. I felt miserable.

Dad and I placed a fragile patch over our differences, I moved back in at home in theory, though I didn’t actually visit.  I started a new relationship with a lovely person, I felt sure all this would lift my chin. It felt good to be with him but it did nothing for my studies. I was still managing to keep on top of my course work so no one at uni seemed to notice. 

A student - model not author

All the Adrenalin that had driven me through my A’ levels seemed spent. When it came to exam time, I couldn’t find any drive or energy. I was on a mental go slow, what was I doing this course for anyway? It felt like a waste of time and money. In addition I was becoming fearful....of what I had no idea. Everything was making me anxious, I was frightened to be out on my own, and sometime to be in on my own. I went to the GP, who said I was down but didn’t really offer any solutions. I hadn’t reached out to anyone at the university to help; it was all inside me....what was wrong with me?!! I went on the fail nearly all my exams, a first for me, quite an achievement!

I know now what was wrong. My first taste of depression, sadly not my last, but with support, learning to understand it, seeing my depression for the illness it is, not taking it so personally, I found how to live with that sliding scale. I readily recognise the signs that were so unfamiliar to me then. I speak about it, I get help, I get better and I won’t be beaten by it.

If you struggle like I did at university then reach out to the support services. People are there at the university to help you. Speak to friends, they have probably spotted a change in you anyway, it’s okay to talk about it. If you notice a friend suffering then do them a favour, help them find support. It’s lonely on the inside of depression – don’t let mental health issues take your potential, battle depression and anxiety and win!!

Levitate Student: Starting Uni in September?

Freshers - Here are ten Money B's....

Be first - Apply for funding ASAP!

Millions of students apply for funding for university every year. It is important to apply early to get the job done and allow time for any issues to be sorted. The funders (SFE, SAAS, SFW, SFNI) will let you know on their websites when to apply. Make sure you are familiar with their website so when they say GO! you are ready to apply.

The application forms ask where you will be studying, what course etc. It is possible you do not know yet for certain – let’s face it A’ level results aren’t out till August! Don’t let this stop you applying, put down the most likely institution on the form. If it changes just let the funder know, it’s not a problem.

Be an empowered consumer

Remember you are a customer of the funding agencies. Expect good customer service and get into some good habits like noting down who you are speaking to if you call them. Most of the time you will get great service and help, but when things don’t go so well do not be afraid to complain formally.

Log on to your online accounts often to check for updates from the funder and to get used to using it. Always remember your log on details and passwords, the funder may not talk to you without them.

Also you are a customer of the university so check out their terms and conditions – usually these are usually found on the website as for example

Student Regulations/University Regulation/General Regulations......

These may be dull but are very important to know about as the intuitions will follow these rules when dealing with their students.

Also see if your university has Student Charter or other form of customer service agreement.

Get to know what support services the university offers such as well-being, advice, careers, help for disabled students etc.

Be on top - Keep the funder informed of changes of circumstance

This seems obvious but when you are busy it’s easy to forget. If you change address, email, bank account, university, course etc then the funder needs to know.

Be informed -Check out your universities of choice on OFFA

The Office for Fair Access work to ensure universities are reaching out to all potential students. Each Higher Education Institution submits an agreement about how they achieve this every year to OFFA for approval.

Read the agreements from universities of choice – there may be details of extra financial help that you may be eligible for.

Be wise - Understand your accommodation contract

Signing your accommodation contract may seem a big commitment and it is. Whether the accommodation provider is a university, private halls, landlord’s agent or private landlord, you should be signing a legal tenancy agreement.

It will be legally binding for the number of weeks outlined and is likely to require the student and a guarantor to sign it.

Know what you are signing for – the number of weeks (these can vary widely 42,44,52 for example); what is the deposit; are there administration fees; what is included in the rent; how many installments & when are they paid; what are the rules for terminating the contract......

Note that for halls of residence the installments may not be equal. For example it is possible for the institution to front load the plan so that you pay more in the first term. This can be tough to budget for but it’s best to be prepared.

If you are looking at private accommodation, then many universities offer services to check the tenancy agreement before you sign – worth doing to be safe.

You do not have to go into halls and if you choice private rented then understand your rights fully. Look on www.shelter.org.uk and www.unipol.org.uk for helpful information. Also learn about Tenancy Deposit Schemes

Remember, if you choose to live at home - consider how you will contribute to the household bills from your student finance.

Be prepared - Explore Student Bank Accounts & budgeting

Many high street accounts offer Student Bank Accounts. Many of these accounts have an interest free overdraft facility.

It’s right to be cautious about the temptations of an overdraft but that said if used correctly it can be a very useful budgeting tool. Students get their student income periodically and for some that is 3 termly installments. Unfortunately outgoings don’t align neatly to this and budgeting and planning can be difficult.

An interest free overdraft serves as a safety net on your account, allowing you to borrow money (within limits) without being charged interest. Used sensibly it can work for you, help you avoid bank charges and having payments such as direct debits refused just because they were set to debit the day before your loan arrives etc.

If you graduate with an overdraft then banks offer Graduate Accounts that allow you pay the overdraft of interest free within a set period of time.

Check your bank of choice for details – we like the comparison table on www.moneysavingexpert.com (scroll to bottom for tool).

Budgeting can seem dull for most of us but it is vital to keep track and really can set some good spending habits. If you are new to budgeting and managing your money then there are plenty of on-line tools and apps. This one is fun for starters to get your eye in. In the long term though it’s best to come up with a method that suits you so you stick with it.

Be ahead -Start your job search

Many students have to or choose to work alongside their courses. Academic staff often guide against too much employment in case it is detrimental to study (they sometimes recommend no more than 16 hours per week). That said though, for some, working is the only way to afford to manage financially as a student. There are great advantages to having that extra cash and work experience too.

So if you do plan to work, remember in university towns competition for part-time jobs is high among students. Most universities have Job Shops as part of the support services and can help you find work. The universities also employ student ambassadors for events or to support specific departments (such as those that work with schools in outreach).

If you work in your home town and the organisation you work for has outlets in the university town, then why not ask your manger to help you transfer?

Always keep safety in mind – if you have to work in evenings then ensure you know how to getting home safe and affordable. Taxis fares can take a huge slice of your earnings!

Also understand how Tax is worked out for students see also www.gov.uk/student-jobs-paying-tax

Be open – talk to family friends and supporters

It’s good to talk if possible to family, friends and other supporters about your transition to university. Certainly speak to those whose income will impact the funding you get (parents, partners etc) about what that means for you all. Do not assume that just because the government have decided that someone should be contributing to your income that the person can or will.  

Talking about money can be emotive so best done when there are no specific money problems that might affect a healthy conversation.

If family/friends are able to offer financial support, what form will it take? Help with rent, a regular sum, a one off lump sum, money for birthdays etc? Sit together and plan a budget – it can help for everyone to see what income you will have and costs you will have to plan for. This information from The National Union of Students might help you get an idea what students spend.

If family can’t help, how will you make up the financial shortfall? Work in summer before going, or alongside course, apply to charities, maximise your interest free overdraft?

Build it all into your budget plans.

Be cautious – don’t overspend before you start

It’s easy to get carried away buying things for university that in the end you never use and didn’t need. How many toasted sandwich makers and stack of six mugs gather dust in student rooms each year?

Perhaps wait before buying some items and see if you really need them.

Also what can you get for free? – think second hand books, www.freegle.org.uk  www.freecycle.org  and charity shops all have amazing "like new" items.

Be comfy with Clearing

Clearing is a very exciting period in the academic calendar. Exam result can throw a sudden change of plan into the mix and a bit of quick thinking is required.

Universities plan their strategies well in advance and have an army of staff on hand to deal with their customer queries and help with new offers and to hopefully win your custom.

Yet so many students just hope it won’t happen and don’t want to think about it. It is really important to consider what you would do if results day means a change of plan. It’s not failing it is just shifting stance and that is fine.

Sometimes between picking courses and results day you have changed your mind anyway about second and third choices, or perhaps the institution has changed their mind about you – for better or worse. You may have received offers from universities but no longer want to accept them and want to look elsewhere – that’s what Clearing is for.

It’s okay – it’s exciting but it’s good to have thought about where else you might want to study, have thought about the financial impact and have planned for those changes.

Clearing might turn out to be the best day ever when you look back – so embrace it.