Student Loan Payments Hinder Good Money Management

 

-        Current student loan payment plan does not benefit UK students

-        The Money Charity’s bid to tackle problem with financial education

-        e-petition launched asking the Government to enforce the change: SIGN HERE

 

The UKs leading financial capability charity, The Money Charity are fighting to make good money management easy and accessible for all students; warranting a better, brighter future both at Uni and beyond.

In a bid to empower people across the UK to build the skills, knowledge, attitudes and behaviours to make the most of their money, the charity, in partnership with Santander, produce a free yearly guide for young people: The Student Moneymanual. Launched in January 2014 and distributed to university applicants by UCAS, the guide aims to help students locate the funds and financial information they need to make the right decisions; and to minimise the debts built up whilst studying.

Whilst the MoneyManual provides the bedrock of good money management for a student, the charity recognises that more practical steps need to be taken to support students successful transition through higher education and independent living into their graduate careers. That is why The Money Charity proudly backs the campaign for monthly payments of student finances.

Paying students monthly rather than termly would help them budget and manage their money more efficiently, together with developing valuable habits and behaviours to employ after they leave university. The official e-petition has been launched to ask the Government to consider changes to the current system and to bring it in line with Scottish funding, that is paid monthly.

CEO of The Money Charity, Michelle Highman said: “Our free annual Student Moneymanual, is the essential guide to Student Finance and managing money as a student.  It’s a must read for anyone in higher education.  But managing money for the first time is complex and the government needs to play its part too.

One of the key drivers behind the introduction of Universal Credit is the monthly payment system and the expectation that this will help people budget better and make the transition into working life easier. Why should this be any different for students?  For most students, their first term’s payment is the biggest amount of money they’ve ever seen, so the temptation to spend unwisely is huge. Monthly payments would help students manage their money more effectively whilst at university, reduce the risk of temptation, and normalise monthly budgeting habits, which they will need for the rest of their lives. At The Money Charity we do everything we can to help students get to grips with good money management, it is time that the government does the same.”

Luis Juste, Director Santander Universities UK added: “At Santander, we believe we all need to play a part to help young people manage their money well.  Many students can have the enjoyment of their university years dampened if they don’t manage their finances sensibly. The Moneymanual has, for many years, been a useful tool for prospective university students to understand student finance and budgeting, whilst minimising  debt. This fits in perfectly with Santander’s approach towards student banking, with products designed to steadily reduce the amount of debt after graduation.”

 

The revised Student Moneymanual is out now and available for free from http://themoneycharity.org.uk/student-moneymanual/

 

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For more information contact Lauren Roberts on 0207 062 8933 or email lauren@themoneycharity.org.uk

 

Notes to Editors: