As you complete your studies, prepare financially with this useful information.
Student Loan
The earliest you will have to start repaying your student loan is 6th April, the year after you leave university. If you are completing your study in June 2020 then – subject to you being eligible to repay (see below) – you would not start to repay until 6th April 2021.
If you began your course after 1st September 2012, you’ll have a Plan 2 loan.
This means that:
- You will begin paying off your student loan when you earn over £26,575 a year, £2,214 a month or £511 a week;
- you will repay 9% of your income over the £26,575 a year threshold. So, if you earned £2,330 per month (or £27,096 per year), you would repay £10 per month (that is 9% of the £116 that is ABOVE the monthly threshold of £2,214).
Repayments are made automatically through the tax system. Payments will depend on the amount you earn over the threshold during any given pay period. It is important to note that if you are paid on a monthly basis and earn over the repayment threshold for that month, perhaps due to a bonus or overtime, a deduction will be made from your salary.
You can find out more here.
Council Tax
If you live in private rented accommodation, it is likely that your course will finish before the end of your tenacy agreement: term ends on the 12th June whilst most tenancies finish on 30th June.
This means that, as a final year student, for the last few weeks of your tenancy you are no longer classed as a full-time student for the purpose of Council Tax, and you will be liable to pay.
Reading Borough Council have estimated that most houses will be charged around £90 in Council Tax for this period. It is important topay the tax in a timely manner to avoid extra charges or court summons.
It is likely that the local authority will send letters or emails about Council Tax, and these may not be sent to the address they relate to (especially if they are aware that the property is likely to be vacant because of the current pandemic situation): it is important not to ignore any letters about Council Tax, even if you do not think you have to pay.
If you are unsure if you should pay or how much you have to pay contact your local authority. Visit the RUSU Advice Service where you can contact housing or money advisors directly and find lots of advice resources.
Leaving your accommodation
Make sure to settle all final utility bills before leaving your rented accommodation. Inform your utility, water and internet provider on the date that you are leaving the property. Ensure you take meter readings on the last day of your tenancy as these will be used to calculate your final bill.
Arranging a check-out of your property is difficult during the current COVID-19 pandemic. It is, however, important that your landlord receives your inventory and checks the property when your tenenacy is over so that you are not at risk of losing your deposit.
You could arrange a virtual checkout and ask your landlord to take the final meter readings for you. If you have left your belongings in your university accommodation, companies who will pack and forward your belongings at a charge exist.
Bank Accounts
When you have a student bank account with your provider, you are often offered great deals such as free overdrafts and railcards. When you finish your studies and your account switches, these offers may change. Check your account’s terms and condifitons or speak to your bank if you are not sure what these are.
It may even be advantageous to change banks when you finish to take advantage of different offers, such as 0% overdrafts for up to three years.
There is lots of useful information on the following websites:
RUSU Advice
The RUSU Advice Service can provide advice to any UoR students while they are enrolled or students who sought advice during the period of their enrolment which has extended into their period of graduation. You can get advice here.
Careers for leavers
Did you know that careers support is available to you for up to 18 months after completing your studies? We have a range of services and support that you can access to help get you started on your professional journey.
Firstly, be sure to create a graduate account on MyJobsOnline to access vacancies posted by recruiters actively seeking to employ Reading students and graduates. Here you’ll also be able to book onto upcoming careers and employer-led events and webinars.
You can also still book a career advice appointment with our Careers Consultants by calling us directly on 0118 378 8359 or by emailing careers@reading.ac.uk. While you’re there, why not sign up to Graduate Career Coaching? This includes up to four 45-minute remote sessions to suit your schedule including evenings and weekends.
Prefer to look for yourself? Work through our self-help materials whether you are exploring your options, growing your experience or are ready to compete for success in the graduate labour market.
Lastly, you can sign up to receive continued communication of the latest careers news, events and jobs after you complete your studies by emailing Lisa Holmes: l.holmes@reading.ac.uk.
Blackbullion
You may also find the resources available on BlackBullion particularly useful during this time, and we would encourage you to make the most of these while you still have access. If you are considering further study, BlackBullion also has useful information about funding as Master’s Degree, for example.
BlackBullion is also hosting an exclusive four-part webinar series for students: “Recession-proof: Financial wellbeing for economic downturns”. The sessions are on take place from 3:00pm to 3:45pm with founder and financial expert Vivi Friedgut. Register for free.
Virtual events schedule:
Thursday 4 June: Financial wellbeing in COVID times
Thursday 11 June: Building financial resilience
Thursday 18 June: Developing financial flexibility
Thursday 25 June: Practical steps for turbulent times
Welfare Benefits
The Welfare Benefit system is intended to help people who have a low or no income. Full-time students generally aren’t eligible for Welfare Benefits – though there are some exceptions – but once you cease to be a full-time student, then you may be eligible to apply.
Currently, the main welfare benefit is called Universal Credit. You can apply for Universal Credit for lots of reasons, and this includes being out of work (as it has replaced Job Seekers Allowance) or if you have a low income.
You can apply for Universal Credit as soon as your period of enrolment as a full-time student is over. Universal Credit is a monthly payment to help with your living costs. The amount you can claim will depend on your circumstances (among others – if you are living alone, with a partner or your parents).
You can find out more about Universal Credit and how to claim it here.
Aside from Universal Credit, other welfare benefits that are for specific purposes, and which do not take your income into account (i.e. are not income-assessed):
- Personal Independence Payment (PIP) is a benefit paid to those who have a disability or long-term ill-health. The amount you get depends on how your condition affects you, not the condition itself. You can find out more about PIP and how you can apply here.
- Some students may leave full-time education and become a carer for a relative or partner. If this applies to you, you may be able to claim Carer’s Allowance. You could get £67.25 a week if you care for someone at least 35 hours a week and they get certain benefits. You can find out more about PIP and how you can apply here.
If you you need some help checking your eligibility for welfare benefits, or with the application process, then there are organisations which will help you:
- Citizens Advice have local offices across the country. Find your local one here.
- Advice UK have a database to help you find advice local to you, which you can find on their website here.
- The Money Advice Service also have some information about places to look for support. This can be found on their website here.
Grants & Trusts
Many charities offer non-repayable grants to help individuals on low incomes. To be eligible you have to meet their particular rules. These may be based on your location, age, gender, current or past jobs or health condition. You can search for these here.
Debt
If you are leaving University with debt outside of your student loan, and you are worried about it, you can get free advice from various debt charities in the UK: