About Us [email protected] Telephone 01522 338204
Can Student Loans Cover Student Housing
Student Articles

Can Student Loans Cover Student Housing

Written by Sam | April 30, 2020

The student loan from the government can be hard to understand and figure out. In essence the loan can cover your loan depending on where you live and how much your rent is and on the other side, it can’t cover your rent, as in it doesn’t matter if you have the cheapest house, it still wouldn’t cover a years worth of rent. Then what happens?

How Do They Work Out Your Loan?

It firstly depends on a few factors:

  • Full or part time student
  • Studying in or outside of London
  • Staying at home or living away from home

They will look at your earnings and see what the household earns, the household means any who are living there and not dependants.

After that they ask you a few more questions about your circumstances to see if they can help you further.

We are not entirely sure of how they calculate the amount of loan a student gets, but the maximum living allowance you can get is around £10,000 and the minimum is roughly £4,000 and what we do know is that they work mainly off your household income. The higher your household income, the lower the living loan you get.

There is a difference between tuition loan and living loan. The tuition pays your University fee and you are automatically granted that, the living and maintenance allowance is the flexible one.

What they don’t tell you is that if you can’t afford rent and the difference between your loan and the maximum they expect your household to pick up.

You can do a quick check to see how much your loan will roughly be here:

Student Accommodation

If you get a loan that isn’t the maximum and you can’t afford accommodation what can you do to help your situation or what is in your control?

The biggest expenditure you are going to have is rent, if you can keep that to a reasonable level for your budget, you can make it work. If you don’t have a big loan, please don’t get the most expensive room if you haven’t got savings or a way to pay for it.

If you can get bills included that is a big bonus for you as you just have a monthly payment and saves you a lot of hassle trying to split it and get money off others.

For the final point in this section, understand how to manage your money. This may sound simple, however, many don’t fully understand and budget their finances, so they spend a lot on unnecessary items and overspend each month. Look at your current spending, see how you can cut any excess spending, be honest with your budget, add money for you to spend and enjoy and then STICK to it!

Getting a Job

The first we all thinking of to earn money is getting a job! You can get lots of varying types. Full time, part time, fixed term, zero hour, however they are all jobs which will pay you, likely per hour! To read our full article, read it here and we will put a detailed summary below.

AS a student, we suggest that you look at these types of factors when choosing a job:

  • The amount of money you need and how many hours that equates to
  • Shift Patterns
  • What have you done before or would like to try
  • Can you travel
  • Will it fit around your university
  • Will it be fun and/or inspiring
  • Will it help you get a job after university
  • Will they allow you to have time off for busy periods?

When you get to university, the fastest ways of getting a job are to to get in contact with SU, recruitment companies and handing CVs out! This will take time and effort and may not pay off within the first day or so, but after a week, you should have offers coming in consistently!

There are other ways to help you earn an income, you can Freelance in your chosen area. This will take longer to build up and you may have to do some work for free, however you can decide the hours and what you charge, within reason! This may take a initial investment, but can reap more if done correctly.

If you need secure and reliable income, a job is a good place to start, you will learn a lot from it!

Saving and Budgeting

This is another really important factor. If you get the full student loan, you will need to budget your termly amount so that you don’t run out of money.

If you don’t get the full amount and it doesn’t cover your loan, this is just as important, because you can figure exactly how much you need to make up for rent and living.

The best ways to manage your money are:

  • Track ALL spending and see how much it costs you to live per month
  • Write down and or track all spending that you incur in the month – See where you are spending unnecessary money and remove it or reduce it.
  • Always use cash where you can, we as humans hate handing over physical money rather than tapping a card
  • Never go food shopping when hungry
  • Work out your rent and bills and never go below what it costs you for that term, this way you can guarantee you have a place to sleep
  • Always try to save money & keep this in a separate account. Out of sight out of mind works here!
  • Use a tracker where you can so you can physically see your spending, from this you can also budget what you can spend each day and month. If you go over you will need to work more or spend less on another day!

We have a tracker, if you would like it for free just message us and you can see more budgeting tips on our YouTube channel here

Discover. Trust. Review.