Cash countdown

STUDENT finances traditionally resemble those of some small nations - chaotic, badly organised and debt heavy. Unfortunately, has no money owed by students chance of being written off as a lost cause by the World Bank.

Parents, friends, students' unions and, of course, your local bank manager will all encourage you, in their own individual ways, to pay your debts.

Keeping your head above water financially while in college is a task students quickly learn to master. With grant cheques barely covering rent in most cases, students have to look for alternative sources of income, preferably legal. While part time work is increasingly a necessity rather than an option, borrowing from banks is also common.

Many third level students will be forced to borrow money at some point in their college careers, typically to pay for trips abroad to work during the summer, but also to cover maintenance during the college year. The major banks, in their advertisements for student custom, make clear their apparent willingness to slip you a few bob to tide you over the hard times.

Our experience is that while we do make these loans available and students do take up the offer, borrowing is not as widespread as one would imagine, says a spokesperson for Ulster Bank, which offers preferential loans to students.

"A lot of them have parental support, or take up part time work Generally speaking, the myth that students are selling their books isn't true.

Ideally, borrowing from banks should be a last resort, at least where maintenance is concerned.

Sensible budgeting may help to ensure that your visits to the bank centre only around lodging your grant cheque or making standard withdrawals (i.e. those not charged at 12 per cent interest).

"If you have £40 in your pocket at the start of the week (the average weekly amount from a full maintenance grant) then try to have money in your pocket at the end of the week," says Helen Ryan, USI's welfare officer.

"Students come into unions on Wednesday or Thursday and they have no money to go home or to eat. And, obviously, don't spend all of your grant cheque at the start of term. If they have problems, they should go into their students' union. More and more, officers are being trained to advise on budgeting."

The sad reality is that many students coming from school to university and, frequently, from a home life where few demands are made on their pocket to a life of comparative independence, are ill informed about financial realities and money management.

On a practical level, one of the most common mistakes made by first years is to run out and buy every book on the college book list a costly and unnecessary exercise. A simple thing like studying library holdings, visiting second hand bookshops or reading the notices on the departmental noticeboard will result in the first major saving of their college career.

If you are forced to seek assistance from a bank, then try not to borrow more than you need and be honest with the bank manager or student accounts manager and be realistic with yourself. If it's going to take you six months to pay back a loan then make that clear from the start because otherwise you will merely add to your financial woes.

Second, shop around when choosing a bank. The tendency is for students to bank with whoever has a branch on campus or to stick with the family bank. Yet interest rates vary from bank to bank, as does their willingness to lend money to first years, who have traditionally been regarded as poor risks by many banks.

Finally, most of the major banks have different student packages on offer which include free student cards, money off vouchers, commission free foreign exchange and, sometimes, preferential interest rates. Remember, though, that if you are borrowing it is worth your while to pay off the loan as soon as possible, since this will reduce the interest payable.

Local credit unions offer more favourable interest rates but the amount of the loan is dependent on the amount of money in the account. Still, if a parent or relative has a credit union account they may be willing to do the decent thing and let you pay them off.

It is also worth remembering that, if you do run into difficulties, most colleges operate a hardship fund which offers short term financial assistance to students.

Some may even offer more long term assistance in the event of family bereavement or a change in financial circumstances due to unemployment. In the end, if you find your debts starting to mount then talk to someone: student services officers, the students' union and the student manager in your bank are all willing to listen and to help.