A Chat in The Dorm with Young Miss Anais Pezzana – Part 1


Backround

Anais is 23 years and in July completed her studies in Finance. This article is an overview of some key points Anais wanted you to be mindful of when embarking on study. See video of full interview.

Part 1 will give a snapshot at the loan system and Anais’ views on it. Part 2 will give a snapshot into Anais’ studies and her perspective on how to get the most out of university in preparation for today’s disruptive job market.


The Student Loan

Anais started her studies in 2015 on a loan of £9000 a year. The student loan has increased, currently at £9250. Anais advises that you should consider carefully what you are going to study. Anais’ undergraduate studies were over four years as she undertook an extra year’s placement at one of Britain’s best known insurance companies. This brought the principle of her loan to £27k (£9 000 x 3). Keep in mind this figure does not include the interest which is added from the time your loan is placed in your current account.

Then there is the maintenance loan. This ‘part 2’ of your loan is as it says – maintenance. Covering your rent, personal spending, etc.

This maintenance loan is split into two parts – maintenance loan + maintenance grant. You can choose whether you have a partial or full maintenance loan. You will need to consider where in the country you’ll be living and things like that.


Interest on loan


This is amended by government meaning, by the time you take out yours for your study, your interest repayments could be very different from Anais’. Keep in mind the moment your loan hits your account, usually in the September start of your university studies, interest will start accruing. This will still be accruing when you leave university.

You will only need to repay your loan when your income is above the repayment threshold. This is currently (as of October 2020 when this article was written) £26 575 or £2 214 a month before tax. For a more in-depth explanation of how the mechanics should work, check out UCAS’s breakdown in the link here: https://www.ucas.com/student-finance-england/repaying-your-student-loan


I can hear you say, “well I won’t need to pay back anything if I don’t earn that much.” But let us be pragmatic here. Unless you plan to live at your parents forever and they are happy with that then it may not matter if you’re on a low salary. But and this is a big but, you would now be at a point of wanting to live your own life, buy things, have more experiences – travel etc. These will need to be funded as I don’t think parents would be too keen to never endingly maintain your life style.


So here goes. Think about the general bills you will have to pay monthly just to have a decent basic living standard if you are living independently or flat sharing. Here are some averages.

· Internet connection - £23 - £47

· Mobile phone -

· Utilities (water, electricity, gas) – average range £73 - £155)

· Food – average monthly grocery bill £160

· Council tax – on average £100

Rent -

· One bedroom - £900 to £1 500

· Larger property e.g. 3 bedroom - £1 700 to over £3 000

Note, that clothing and transportation was not added but realistically, you will have to consider on average, what you will spend on these.

The average monthly salary after tax is around £1 900. An annual salary of £30 000 is doable if you are flat sharing.


Sources:

https://abcfinance.co.uk/blog/the-true-cost-of-living-in-uk-cities/

https://www.numbeo.com/cost-of-living/country_result.jsp?country=United+Kingdom

https://www.internations.org/go/moving-to-the-uk/living/the-cost-of-living-in-the-uk

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