Students. Money. Generally speaking, those two words don't go together — particularly without "don't have" between them. Studying for a long-term goal doesn't necessarily mean you have to go completely without short-term fun (or even food). However, you just need to play it smart. Here we look at where the cash might come from.
Where do you get it?
It's true that there is an undetermined number of students out there living below the poverty line. A study by La Trobe University (2000) found that one third of students could not afford heating, while almost half felt that financial hardship was affecting their health. But help for the financially challenged student is available, if you know where to look.
Government help
Whether you are a full-fee paying student or one with a Commonwealth Subsidised Place (CSP), you have access to a specific government loan scheme to help cover your tuition costs. Note that you must be an Australian citizen or holder of a permanent humanitarian visa. Those who are Commonwealth students can access HECS-HELP, which enables you to defer payment of fees until your income reaches a certain level (currently $38,149). You simply pay back what you owe through the tax system.
Full-fee students have access to a similar scheme called FEE-HELP, under which they can apply for a Commonwealth Government loan to cover part or all of their tuition fees. Repayments are made once income reaches a minimum payment threshold.
For more information regarding both schemes, including loan thresholds ($80,000 maximum over a lifetime for FEE-HELP borrowers) and repayment schedules, visit www.goingtouni.gov.au.
Other income support
A number of different allowances are available through Federal Government schemes to assist with living and other expenses for full-time students enrolled in approved courses. Information about Austudy, Abstudy, Rent Allowance and Youth Allowance are all available from www.centrelink.gov.au.
Scholarships
There are many different types of scholarships available through universities and other education institutions. Some cover fees, others fees and living expenses. Are you eligible for one? You'll never know if you don't check it out. Contact your university to see what's on offer.
Student loans
Most banks and financial institutions have specific accounts for students. The National Australia Bank, for instance, offers an account with all the usual attachments (including fees and charges) as well as special discounts at outlets such as Borders, Hungry Jacks and STA Travel. As with all things financial, read the fine print before choosing your account. Infochoice (www.infochoice.com.au) is a great place to begin comparing options.
There are also commercial loans available, specifically aimed at tertiary students. Loan amounts vary depending on the bank/financial institution and your personal circumstances, but you generally do not need to repay them until after your studies are complete (or a maximum period of five years, whichever comes first). It's worth noting that the majority of loans like these start accruing interest from the day you take them out — not the day they are due for repayment. Also, most banks will probably require a guarantor on this type of loan, so you'll need someone to vouch for you.
University loans
Macquarie University in Sydney offers interest-free loans to students up to the value of $1400 to cover the cost of things such as textbooks, computers and living expenses. Check with the Student Finance officer or similar at your institution to see if they operate a similar scheme.
The casual job
If all else fails and you can't look another tin of baked beans in the face, it might be time to consider part-time or casual employment. Many universities run an employment service and this is a great place to start looking for work available in the area. Remember that if you receive a Centrelink payment of any kind, you need to declare your additional income and your payments may be affected. Generally you can earn up to $6000 in a financial year before your payment is affected, but check out the Centrelink website to be safe.
Also remember that work time cuts into valuable study time (not to mention "experience university time") and it's generally suggested that full-time students work no more than 20 hours per week.
Credit cards: a warning
While having a credit card to "fall back on in emergencies" seems like a great idea, the reality may be quite different. If you're using credit to make up a shortfall in your overall income, it's easy to get into a lot of debt in a short period of time. Many banks and financial institutions offer "student cards", which take into account that students often move around and may have unstable incomes. This makes it easier to get one — but not easier to pay it off. Interest rates on these cards can be high, cash advances (which seem like a godsend when the rent is due) attract interest from day one (no matter what your "interest-free" period might be) and there's usually an annual fee (generally $30-$60) to take into consideration.
If this is your first foray into living on your own and managing your cash, it may be best to leave the credit card for a later date. If you simply can't get by without one, lean to manage it properly. Don't spend more than you can afford, plan to pay it off in full each month and read the fine print in the terms and conditions — the interest rate and colour of the card are not your only considerations!
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