Manage the student debt load
A quarter of Irish students struggle with debt and over half say they miss lectures in favour of paid work, writes
The financial stress of student life is showing no signs of easing. The annual Irish League of Credit Unions (ILCU) student costs survey — just published — tells us that for a quarter of Irish students, debt and finance is their biggest worry. Almost three quarters say they have to work during the college term to make ends meet.
Some 55% say they are missing their lectures in favour of paid work, up significantly on 22% in 2017. Six in ten say having to work has a negative impact on their studies during busier college times.
Of the three quarters saying they have to work to cope with costs, seven in 10 are working part-time.
Some 14% work full-time and 15% work ad-hoc hours. On average, students are working almost 15 hours a week and earning just over €10 an hour.
Unsurprisingly, students say their biggest monthly expense is rent, at an average of €318 a month. This is followed by food at €116. Students are spending €88 per month on travel costs and €74 on utility bills.
A total of 58% of students say that financial or debt-related worries are having a negative impact on their experience at third level. Of these, four in 10 say they split their time between paid work and lectures and have no time for anything else. Some 22% say they have no money to do anything outside attending lectures and 18% say financial worries are a significant source of stress and are impacting their mental health.
Over a third of all students surveyed (34%) said they expect that their third level education costs will leave them and/or their family in debt after graduation.
Against this backdrop, trying to make both ends meet at college is probably as difficult as it’s ever been.
Despite the fact that such a large portion of students struggle financially and say financial worries are having a negative impact, the vast majority admit to having no monthly budget. Check out the budgeting calculators on the Competition and Consumer Protection Commission site, ccpc.ie, or you could open an Excel spreadsheet, or even go old-skool and use a piece of paper.
Stick your income in on one side, tot up all expenses on the other, and keep tinkering until the latter equals the former. Then stick to it.
Living away from home for the first time can be a daunting experience. Getting your accommodation right will be vital in smoothing the transition from second to third level. All colleges now offer extensive support services to parents and students; a phone call to the accommodation or students service office should help answer any questions. No matter what form of accommodation you’re looking at, always factor in distance from campus/town/shops. The price advantage in a far flung bed can quickly be eroded by bus fares. Of course, all of this supposes you can find a place to live in the first place.
Even if the college canteen is subsidised, eating in is always cheaper than eating out. If you’re not already a domestic god/goddess, take a few lessons before you go. Don’t buy a roll at lunchtime, bring your own sandwiches.
Making a grocery budget stretch, meanwhile, is a very valuable skill. Before going shopping, make a list of dinners and lunches you’re going to put together over the course of the week and use that to write your actual shopping list. That way you’ll avoid buying stuff that you think you might need, but which will end up going uneaten. And before you put anything on the list, make sure you don’t already have it. Then, once you’ve made the list, try to stick it. Avoid impulse buys and try not to shop hungry.
Pay phone, gas, electricity and anything else on time, and if you set up standing orders or direct debits to deal with them, make sure there’s enough money in your account to cover them, otherwise the bank will crucify you with penalties.
Between rent, deposits and books, September is a high-spending month. There are consolations. The higher the student density in any town, the greater the number of businesses who will try to lure you in with student discounts. The CCPC offers some good all-round moving to college advice on ccpc.ie.
The Student Leap Card is a must-have. It costs €10 and gives you massive savings on Irish Rail, Dublin Bus, Luas, Bus Éireann and a range of local bus companies. There are also discounts available with a range of brand partners, including Boots, the GAA, Vodafone and a host of clothing retailers. The card has to be renewed annually.
If you worked during the summer, you could be entitled to claim tax back. The forms can be downloaded from www.revenue.ie. A part-time job will boost your income, but could mean less time for studying and socialising, so you’ll need to weigh up your options carefully. It’s a good idea to wait until you get your timetable before you apply for anything, so that you’re sure of how much free time you have. You could also be entitled to a grant. For detailed information on grants and funds for students, check out studentfinance.ie.
As we speak, the banks are sharpening their claws in the race to capture as many first years as possible. They know. Get them young and you have them for life. Most of us still use the bank we signed up with in college, so when choosing, try to look past the free offers and focus on the fees and charges.
Most student accounts are free of transaction fees, but this doesn’t cover overdraft fees, which can be expensive, so if you think you might have to use an overdraft, check how much each bank charges for the privilege. Back on ccpc.ie, you’ll find a student current account comparison tool which details what each account offers.
If you are having money worries, look for help as soon as possible. You can talk to your student welfare officer, or, if you are having problems making repayments on a loan or credit card, contact your bank to explain your problem. MABS, the Money Advice and Budgeting Service is also a great source of independent advice for those who find themselves in hot water with money.
Whatever you do, don’t ignore the problem, it’ll only get worse. And remember, missed repayments will affect your credit history and could mean difficulty getting loans in the future.
