Students studying at third level have never had an easy time supporting themselves financially. It’s the constant struggle of having adult costs – bills, rent, car, petrol, food etc – but not being able to make a full-time adult wage to cover them.
It’s a frustrating chicken and egg scenario: you need money to be able to study but you can’t do that without a job; you can’t get that until you’re qualified with a degree and the class hours make it impossible to work full-time.
The experience of students with family support versus those without is separated by a yawning chasm. Being able to focus on studies full-time without having to think about money is a privilege only available to some. The rest have to manage with money cobbled together through part-time jobs, grants, loans and scholarships. It can sometimes be a full-time job in itself just to get by.
While this has always been difficult, the cost of living and accommodation crises have made it borderline impossible for many. The traditional money saving advice like “bring your lunch from home” feels patronising when rents for basic single rooms in Irish cities hug €1,000 a month. Earlier this year, research found the average student living away from home in 2023/24 needed well over €1,500 a month to survive. That’s an amount even the most generous grant or part-time job after tax would have trouble covering.
The truth is you can’t simply budget your way out of economic crises and students feeling the pinch can’t just simply tighten their belts. If they tried, they would pass out. So it’s important to acknowledge that student money struggles are down to wider issues and less about individual faults, but there are some things that might be useful to know when it comes to juggling money while studying. Being financially literate starts with arming yourself with as much information as possible.
Be prepared
You can almost feel the eyes rolling at the standard advice to “make a budget and stick to it”. A budget can only work when you have money to fund it for starters. But an important part of budgeting is figuring out your expenses and working out future costs. It pays to know what you have to pony up for in the next semester so you know how much you will need to find to make it through instead of being caught out mid-course and being hit with the stress of unpaid bills during an inconvenient time like exams.
Knowledge is power and it can give people the information needed to weigh up options. For example, some might think living at home will save them money but once the petrol/bus/train/car costs are totted up for the commute, it might make more sense to live near college. That’s if they can find accommodation. Or vice versa.
Work out what your contributions are, what your textbook costs are likely to be, what any essential course supplies, rent, train tickets, bus fares, gym memberships, prescription costs might be per month. Anything needed to fund life to a decent standard while you study (for some this means factoring in nights out and for others the odd set of acrylic infills – everyone has different priorities) is included.
Now you know what your number is, you have two options – find a way to pull together enough money to meet those expenses or reduce them.
It is also important to stress the importance of an emergency or “F-off fund” – a term coined by Paulette Perhach. This means making sure you have enough money to leave a dodgy rental situation or an awful job. Unfortunately people can try to take advantage of students and having enough money to leave instead of letting them make you miserable is a life saver.
Funding options
The Susi (Student Universal Support Ireland) grant is relied on by many Irish students but it can be a tricky mistress for some applicants. If you are under 23, you tend to be assessed as a dependent and your parent’s income is taken into account, regardless of whether you actually receive any support from them.
The process to prove financial independence is quite difficult. For example, parental “estrangement” has to include evidence such as court orders and letters from social workers or Tusla. That means most students who don’t live with or receive support from parents due to relationship breakdown and who don’t involve outside agencies may find it trickier to prove. However, according to the Susi website, “other documents may be provided” when assessing estrangement, so if that’s the position you find yourself in, it’s worth arguing your case.
It’s important to be aware of threshold income increases set out by in Budget 2023 and set to take effect from September 1st. This means applicants and/or their parents can earn a bit more and still be eligible for grant money. This is good news as the thresholds can stop some working and lower middle class students from accessing grants especially where both parents have their pretax income assessed.
The income threshold for the 50 per cent student contribution grant has been lifted from €55,240 to €62,000.
Then there’s the new student contribution grant of €500 for household incomes between €62,000 and €100,000. And families who earn a bit on the side through the rent-a-room relief scheme (up to €14,000 a year tax free) won’t have this counted in their overall income under the new measures.
Students themselves are able to make a bit more during semester breaks, with the maximum earnings allowed outside term time increasing from €4,500 to €6,552.
Students should also make contact with the relevant bursaries and scholarships offices at their institutions to see what is available to them. Not all are dependent on academic performance; some support students from particular backgrounds or locations, some support special interests or talents. They can be a lifeline but it’s important to know where to find them and how to apply.
There is also help in the form of student union welfare offices. Depending on the circumstances, they are usually able to offer interest-free loans or gifts for sums up to €500 for emergencies. Contact the one in your third level college to find out more.
Be careful of credit
Just because someone offers you a loan or a credit card doesn’t mean it’s a good idea to take one. Being considered eligible doesn’t make it safe. However, on the flip side, not every student has the privilege of getting through their studies without accessing a line of credit and, managed properly, it can be a lifeline for some.
The main thing to understand is the difference between student credit cards and loans. While banks might offer 0 per cent or low interest rates on the first six to 12 months of purchases on student credit cards, the normal APR (annual interest rate) can be as high as 20.2 per cent at Bank of Ireland and 20.5 per cent at AIB cards. With compound interest and few minimum monthly payments missed, your balance could snowball fairly quickly if not managed properly.
While credit cards are handier to use in case of emergency, a student loan usually offers lower interest rates. Bank of Ireland, for instance, currently has an advertised student loan rate of 5 per cent variable APR – less than a quarter of its rate for unpaid credit card balances.
Credit unions also offer student loans with chief executive of the Irish League of Credit Unions David Malone stressing they are “very aware of the challenging time students going to third level have these days”.
According to Malone, credit unions offer student loans at rates of around 6.5 per cent though the “lowest is around 3 per cent” at individual credit unions across the country.
“The loan itself is very straightforward with no complex terms and a key aspect is they can pay it off early or increase the monthly payments without penalty,” he said. “That’s very helpful for students looking to make higher payments if they have a job in summer, the flexibility for students when they have more money.”
Wherever they turn to borrow, Malone cautions students to “be aware of the terms and conditions of any financial contracts you’re entering”.
This advice can extend to things like buy now, pay later offers, mobile phone contracts and in-store loans at what can be usurious, albeit legal, rates. The last thing you want is debt hanging over you at graduation.
Know what you are entitled to
Being a full-time student entitles you to discounts across areas from travel to retail. Discount aggregators like UNiDays and Student Beans offer decent percentages off popular shops like Asos and restaurants like Milanos.
Companies like Dell and Apple also offer their own separate student discounts to ease you back to college. Hairdressers and beauty salons will sometimes offer lower rates to students who make appointments on offpeak days like Monday, or to those willing to act as models for trainees.
Be aware that you might also be eligible for low or no-fee bank accounts with certain providers and keep up with tax relief you may be able to claim on courses.
Being a student is tough, so make sure you take full advantage of any perks on offer while you can.
