How students spend student loans differs from each individual – although the thought processes behind the purchases are pretty similar. Students do not like to admit that a lot of their expenditure is wasted, where they tend to spend money on things that they do not need, want or even understand why they bought it.
Student loans are a godsend, and a life-saver for many students who cannot afford to pay their tuition fees upfront, or be able to completely support themselves financially, many people are unaware how useful they are and as a result are not any closer to understanding student debt and they may need to understand the implications of taking on student loans and should look into student budgeting tips. However, the fact that student loans are paid into students’ accounts in three instalments, in larger sums than students can handle, is dangerous. These lump sums arrive at detrimental parts of the year as well.
The first student loan instalment is during or just before Fresher’s Week at university where students tend to party for one or two weeks at a time – that is a lot of Jager. Students find themselves spending their entire three-month allowance on alcohol and take away food as they start university, and then tend to have to get a part-time job and live on baked beans for 12 weeks until the Christmas break saves them and they can go back to their mum for home-cooked meals.
The second student loan is given to students usually at the beginning of January when students are back at university and celebrating seeing their friends again after the holidays. This time is also dangerous as students think that as they somehow survived the first three months on literally no money, that they can re-live this lifestyle. January is also full of sales and markdowns from the year before, and young individuals like to treat themselves to that new television or Xbox as a way of dealing with their studies.
The last instalment of student loans come in April, or March depending on when the university term timetable ends for the academic year. Students only can see until the end of term and miscalculate their budget for their last set of loans. Students think that they only need to survive until the end of term before life somehow manages to find a way. However, students soon realise that they won’t have any money for the long summer and end up having to find jobs to financially support themselves.
A large sum of the final student loan is spent on energy drinks and junk food to get them through all-nighters at the library and the end-of-year celebrations with their friends.
One of the main items that students waste their student loan on is drinks: alcoholic and non-alcoholic. Buying soft drinks and bottles of water on campus or when they are out, used too much of their budget, as well as going out at least two nights of the week and drinking with friends.
Another financial issue that affects many students is how they choose to feed themselves. Although a takeaway or fast food may seem like an easy option, it is always more expensive than preparing their own food, as well as being extremely unhealthy – there are lots of tips for students to save and student discounts.
Although students may make some bad decisions when it comes to financial choices during their time studying, we’re sure that no student would change their experiences at university – no matter how much it cost them – and would eat beans for 4 weeks if they had to.
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