More than 1 student account? NEED HELP! Watch

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#1
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I really don't understand student finance, and for some reason - my maintenance loan is not going to be enough to cover my accomodation for the year!

Anyway, my question is, can I get 2 student accounts to help me out even more? I know in the T&Cs of the accounts I probably can't, but I've heard of people having more than one?

Also, where does my maintenance loan come from? I'm guessing it's my local council, and my 'student account' is just a big fat overdraft? And extra benefits...

I'd appreciate any help! Thanks
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Orthala
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#2
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If you mean LEA rather than council then yeh kinda. Its all done my Student Finance, who are their own thing. And yeh some people are unlucky with accomodation. Mine was £2285. So I had an extra £1k... but yeh.

Summer, you can earn loads, I earnt £1700

Having 2 student accounts you can do, but its against most of T&Cs of most banks, so I don't recommend it.
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SaphMB
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#3
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(Original post by Orthala)
Having 2 student accounts you can do, but its against most of T&Cs of most banks, so I don't recommend it.
My friend has two student accounts, I guess she wasn't privy to this information
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snu
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#4
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If you can't live on loan + 1 student account, getting another student account is not goign to solve your problem and you'll be in a massive hole at the start of the next year...
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Orthala
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(Original post by SaphMB)
My friend has two student accounts, I guess she wasn't privy to this information
So do I... I just don't recommend it lol.
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:)x
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(Original post by Orthala)
If you mean LEA rather than council then yeh kinda. Its all done my Student Finance, who are their own thing. And yeh some people are unlucky with accomodation. Mine was £2285. So I had an extra £1k... but yeh.

Summer, you can earn loads, I earnt £1700

Having 2 student accounts you can do, but its against most of T&Cs of most banks, so I don't recommend it.
LEA? Yes! That's the one. And is that what a 'student account' is? And most of them are interest free, yes?

I'm earning money atm. But after tax it's £980 a month, then after parent's monthly rent fee it's £680. Tehn after normal expenses per month it doesn't give a lot to save. I worked out I'm going to try and save £4000 (within 10 months) but I was just going to put it in a 3 year term deposit and then pay off the start of my debts when I finish uni...

See I could contribute my savings to a lot of accomodation but I don't want to be living in my overdraft as soon as I start uni.

I hope that made sense
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(Original post by snu)
If you can't live on loan + 1 student account, getting another student account is not goign to solve your problem and you'll be in a massive hole at the start of the next year...
but my loan doesn't even cover my accomodation!
if i had no savings i'd be going into my overdraft as soon as i startuni just to cover my accomodation costs!

what else do you suggest?
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Orthala
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#8
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You get charged £680 a month rent!?!?! Blimmin Jesus thats loads. I pay £225! My friend in Soton pays £300 and his is expensive.

Ok - Student Loans is just basically a government company which are the inbetween people for loan for studying. You apply to them etc.etc.etc. and get your money into an account you choose..

.. most of the time this happens to be a student account. A student account is pretty much a current account, with a debit card, online banking etc. but with a few incentives, such as an interest free overdraft, free money, railcard or whatever. Depends on the bank to what you get.

Interest free overdraft limits depend on the bank you go to and the situation. Halifax give upto (upto being a key word with overdrafts) £3000, but majority never get anywhere near this. HSBC give upto £1000. It depends how well you use the account, how much money goes in and credit rating. This means you can borrow upto the overdraft limit (making your account be in a negative balance) with no interest charges.

Obviously banks want you to stick with them so in their terms and conditions they usually put something in to say you must only have 1 student account. So that when you finish uni, in your overdraft, you then get charged interest and the banks earn their money back.

-------------------------------

How much student loan are you getting?
Are you currently at uni, and the costs above are what you are having to pay? (the £600 odd a month)
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:)x
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#9
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(Original post by Orthala)
You get charged £680 a month rent!?!?! Blimmin Jesus thats loads. I pay £225! My friend in Soton pays £300 and his is expensive.

Ok - Student Loans is just basically a government company which are the inbetween people for loan for studying. You apply to them etc.etc.etc. and get your money into an account you choose..

.. most of the time this happens to be a student account. A student account is pretty much a current account, with a debit card, online banking etc. but with a few incentives, such as an interest free overdraft, free money, railcard or whatever. Depends on the bank to what you get.

Interest free overdraft limits depend on the bank you go to and the situation. Halifax give upto (upto being a key word with overdrafts) £3000, but majority never get anywhere near this. HSBC give upto £1000. It depends how well you use the account, how much money goes in and credit rating. This means you can borrow upto the overdraft limit (making your account be in a negative balance) with no interest charges.

Obviously banks want you to stick with them so in their terms and conditions they usually put something in to say you must only have 1 student account. So that when you finish uni, in your overdraft, you then get charged interest and the banks earn their money back.

-------------------------------

How much student loan are you getting?
Are you currently at uni, and the costs above are what you are having to pay? (the £600 odd a month)
Ohhhh no, I obviously didn't explain well or you misread.
I am on a gap year before I start uni. After being taxed, my monthly wage is £980. My parents then take £300 of that, leaving me with £680... That's where that figure came from.

Anyway, I can get the smallest maintenance loan possible. I think it's around £3700. When my accomodation next year is going to cost £4200. And so, if it wasn't for me working this year, my loan AND overdraft are pretty much gone.

(All being if i understand this correctly, lol)

Also, does my tuition fee loan come from the same place as my maintenance (LEA?)

And I don't remember the figure, but I remember being at Aston open day at a student finance talk, and since my parents' income thing is in the top one, I get the minumum loan.

I hate that it's all income assessed, why do they think that my parent's are just going to pay for me all the way through uni?

meh
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Orthala
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#10
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Well a few points:

1. They won't take the whole loan straight away.

2. You don't get the whole loan straight away.

3. Because of the above 2 points it will be wise to get saving or prepare a job for next year. Just a Sat job anyway. I am in 2nd year and regret not getting a job (although I may get one after xmas exams).

4. Tuition and Maintenance yes, same place. However, you never see tuition, it goes straight to the university. The maintenance goes straight into account. It is split up into 33% (Sep/Oct), 33% (Jan), 34% (After Easter Hols).

5. Yes the system is lame. Not much we can do.

6. If you wish to apply for student finance (for the loans). http://www.studentfinancedirect.co.uk - Thats the site for it. You will be able to apply from Jan/Feb.

7. I forgot what else I was going to say. I will reply to my own post when I remember.
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Orthala
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7. Oh Yes I remember. When did you start your job? You may be able to get a slight tax refund in April 09 if you started after April 08 depending how much you earnt and how much tax you paid.
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:)x
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#12
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I started on the 20th October, and first pay is being paid this thursday WOOOO!
I also paid tax on my previosu job, so maybe? Not that I know how to get that back lol.


Thank you for those points. So willI have to pay accom fees at the start of every term? Rather than just one lump sum?

Thank you for answering my questions and putting up with me. I never realised how complicated it all is.
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Orthala
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#13
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Ok well if you had a previous job too then you will need P45 from that job, then in April P60 from current job. Then you can come back here, post the numbers on and someone will work it out for you.

Um yeh generally thats the case, it really depends on the uni. What most do it take like £900, £900 then £1200 or whatever the amount comes to. Most do it in accordance to student loans, otherwise its a pain in the bum. It should say somewhere on the uni website though.
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flipshot
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#14
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You don't need to worry about the LEAs next year anyway. Its all being done centrally by the student loans company and not the individual LEAs. They will only have the LEAs doing it for existing students.
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