Money Issues
STATUATORY SUPPORT - LEA / STUDENT LOAN COMPANY
You will be able to apply for a £250 part-time course grant from the DFES to help with your course costs and fee grant of between £765 and £1150 depending on the intensity of your course (i.e how many credits you are doing). There is no special help given for travel costs to and from the University of Bolton.
Your benefits will not be affected by receiving the part-time course and fee grant.
To obtain an application pack contact the DFES on 
0800 731 9133 or download a form their website at www.dfes.gov.uk/studentsupport
DISCRETIONARY FUNDING
Access to Learning Fund
This is public money given by the government to the University of Bolton to distribute to students in severe hardship.
Part time students are eligible to apply providing you are studying at least 60 credits and are eligible for the part time course grant. You should seek advice first.
The University of Bolton has a large community of part-time students who may be in receipt of means-tested benefits such as Income Support, Housing Benefit and/or Job Seekers Allowance for the duration of their course.
This section aims to clarify the rules relating to part time study, benefits and student support.
WELFARE / STATE BENEFITS
What is the definition of a part-time course?
The DWP and Job Centre Plus will class your course as part time if it is officially classed as a part-time course by The University of Bolton. You can study part time as long as you keep to the rules for 'part-time study' are 'available for work and actively seeking work' and have a valid Jobseekers agreement.
Will my benefits be affected?
Remember you can follow any part-time course without losing benefits if you are:
- Receiving Income Support (not required to sign on).
- Over pension age.
- Receiving Incapacity Benefit (IB) or Severe Disablement Allowance. This is technically a 'safe' benefit as you cannot be treated as capable of wrok simply because you are studying either a part of full time course but if you are challenged by the DWP regarding your ability to work, you should seek representation from the Advice Unit immediately.
- Receiving Carer's Allowance. You are allowed to study up to 21 hours in 'supervised study'. If you are challenged by the DWP regarding your study, you should seek representation from the Advice Unit immediately.
Availability for work and actively seeking work
Your availablity for work should not be affected by your part-time course if your study hours are at times outside 'working hours'. For example,
if you attend the University for evening class, this will be ignored if you are looking for daytime work.
You can sign on if:
- you sign a Jobseekers Agreement which will clarify the steps that you are undertaking to actively find work,
- you can demonstrate that you are following this agreement,
- you agree that you are willing to work for a minimum of 40 hours per week. If you have mental health or physical problems or carrying responsibilities the hours can be reduced,
- you are prepared to give up your course or re-arrange it outside working hours immediately a job comes up.
- you actively seek work.
Your part-time course will not be regarded as affecting your availability for work if:
- you can show that you could continue your course, even if you started work by re-arranging your study hours to fit around your job
AND
- 3 months before your course started you were claiming JSA, IB, IS (as sick) or on a government training scheme and you keep to your jobseekers agreement
- Or in the 6 months before the course started you had a total of 3 moths claiming JSA, IB, IS (as sick) or on a government training scheme and the rest of the time you were unable to claim benefit because your working full time or earning too much and you keep to the agreement.
- If you fit in with these rules then you should not be asked any more questions about your course when you complete the student questionnaire.
The Student Questionnaire
You must inform the Job Centre Plus that you intend to enrol and have enrolled on a part-time course at the University. You will be given a questionnaire to take away and complete. Always get advice before completing the form as the form tests your commitment to the course! If you are too committed and unlikely to abandon your course, then you will not satisfy the 'availability for work and actively seeking work' condition. For example, you may lose JSA if you say you need to complete the course in order to get the job you want, you have paid significant tuition fee costs, etc.
You may also be asked about unsupervised study. You will need to make it clear that the hours do not clash with your Jobseeker Agreement. You may also be asked if you will be allowed to miss lectures or other classes to attend interviews and still complete your course. Speak to your tutor then contact the Advice Unit if you need further practical help on 01204 900850.
Other Financial Issues
Banking
As a student it is likely that you are going to need an overdraft facility during your time at The University of Bolton. Therefore, it is vital to think carefully about where you are going to open an account. Many students simply open a student account with their existing bank and do not shop around for the best deal. The things you should consider include:
- the amount of overdraft eligible for charges with the account,
- what happens if you go overdrawn,
- what happens when you graduate.
These days banks are highly competitive offering generous facilities to students, especially interest free overdrafts and credit cards, but please be aware of the pitfalls, misuse any of it's facilities or fail to stick to your agreement, then a bank can demand the whole amount back, and some may even threaten to close your account or take legal action.
Current Student Accounts
This is the commonest type of account offered to students which has a cheque and switch facility attached. Your eligibility will depend on the bank's set criteria, which can vary from bank to bank. Usually, the criteria will mean being registered on a designated under-graduate course, satisfying the residency conditions and passing a credit search.
What can I do if I am refused a student current account?
If you do not pass the bank's set criteria, usually the credit search, then you may be offered an ordinary savings account or a basic bank account instead. Students who will have this type of account are students with existing debts who have a County Court Judgement entered against them, some students over 54 and students who have failed to provide relevant information for the current account.
Unauthorised Overdraft
Many students will be offered an interest free overdraft with their account, which has been specially arranged for them by the bank.
However, an unauthorised overdraft is highly likely to be subject to charges such as increased administrative charges levied when letters are sent to you about your overdraft, even if the unauthorised balance is very small. It is not uncommon for a bank to charge £12 a letter and £25 in charges with extra charges every time you use your card through a cash machine.
This can soon add up to a substantial amount with little prospect of getting the charges waived if the student fails to act quickly. In some cases the Advice Unit can help write off charges where an unreasonable charge has been made or in cases were the student has acted appropriately.
If you are charged by your bank and need further guidance, you should contact the Advice Unit as soon as possible who will contact your bank regarding your account. However, the best way to avoid charges is to arrange an approved extension to your overdraft facility. In some cases you may be required to complete an income and expenditure form. Speak to the Advice Unit if you need help.
Charges
It is perfectly legal for banks and building societies to charge for the use of certain services. These must be set out in the terms and conditions and details of the charges must be given when an account is opened, before any charges are made or whenever you request them.
The British Bankers Association (BBA) is the organisation, which produces the Banking Code of Practice. Information sheets called 'bank facts' are available from their website at www.bba.org.uk which includes information on bank charges, interest and tax savings.
If your account has been charged and you are not clear about why it has been made then you should ask for a breakdown and explanation of the charge. If you are still not satisfied and feel the charge has been applied incorrectly then you should contact the Advice Unit who will help you to complain and assist to take the matter further.
Other sources of Income
Employment
This is the main source of student funding after Student Support.
If you are in the first or second year of your course you are advised to seek part-time employment, particularly if you are in your first year and classed as a single student in order to finance yourself through the year.
This will be especially important if you subsequently apply to the ALF for financial assistance, as there will be an implied minimum 'assumed income' threshold of £1,500 per academic year. this equates to 1 full working day a week at minimum wage (eg a Saturday job).
As well as National Insurance the law requires everyone who works to pay Income Tax to the Inland Revenue. The first £5,035 (2007/2008) of the annual income is tax-free. If you do not earn this amount during the current financial year , which runs from 6 april 07 until 5 april 08, it may be possible for your employer not deduct income tax in the first place by completing a P46 or P38 (S). If you have to pay then you will be entitled to a tax rebate at the end of the tax year. The Inland Revenue will process this automatically or you have to submit your P60.
The Advice Unit can advise you on any issue relating to working conditions, holiday pay, income tax and national insurance, minimum wage and employment agencies.
Student Centre 'Job Shop' and Careers Service
Both are free and confidential. All students are advised to register with the Job Shop which can make it easier for you to obtain and/or contact student employers during your studies. The Job Shop advisor is qualified and experianced in dealing with issues such as employment agencies, minimum wage and working conditions as well as practical help in obtaining part-time, temporary employment.
Professional careers advice is also available all year round.
Bank Overdraft
Banks are highly competitive offering generous facilities to students especially interest free overdrafts and credit cards. However, beware of the pitfalls. You should only open one student account and keep in regular contact withe the bank's Student Advisor.
Parents, family and/or Friends
If you are assessed to pay your own tuition fees based on your parent's or partner's income then they will be expected to meet this cost. The University cannot provide any assistance towards tuition fees from the Access to Learning Fund.
Welfare Benefits
In some cases you maybe entitled to benefits especially if you are a single parent student. You should contact the Advice Unit who will do a calculation assessment to assess if you are eligible for Income Support, Housing Benefit or Job Seekers Allowance.
HC1 Certificate (help with health costs)
All students should apply to the Health Authority, and applications are available from the Students' Union Reception Desk. You will need to submit a copy of your financial assessment. Limited or full exemption certificates are awarded for prescriptions, eye and dental costs.
NUS Extra Card
The University of Bolton Students' Union is a member of the National Union of Students (NUS). The NUS Extra card is now a combined identity and discount card. It has all the benefits of the old ISIC card plus many new and exciting discounts. To get more information look on our website or call in to the Students' Union Reception. Students studying at the University on or off campus or on a work placement are eligible for the new NUS Extra card. To obtain your NUS Extra Card you will need your University identity card and £10.00.
Young Person's Railcard Card
This allows for one-third discount on travel in the UK. You can apply for the card at your local train station.
Credit Cards
This is not actual income! It is the easiest way to get into debt and the most difficult to pay off due to the high interest rates and charges.
Try to keep this type of spending to a minimum and have one card only as credit cards are regarded as 'secondary' debts. The Advice Unit sees many students who use credit cards as a means to pay for esstential items such as food and bills, and who subsequently run into significant debt. Seek assistance from the Advice Unit if you are unable to pay your bill or are thinking about paying your priority payments such as rent, utility bills, and food.
Store Cards and Catalogues
These are commonly used by students especially single parent students and students aged between 18-24. They are readily available through shops and post. Use these in conjunction with credit cards, and you could find you're seriously in debt with little prospect of paying them off quickly due to extremely high interest rates. Most student who use both credit and store cards in their first year at University find they are unable to clear their debt throughout the remainder of their course.
If you do opt for a store or catalogue account, try to keep your spending to a minimum so you can clear the balance upon arrival of your bill and use it to pay for essential items only, such as school uniforms.
If a creditor is persuing you, then you should seek help immediately from the Advice Unit on 01204 900850 or email info@ubsu.org.uk
Credit to avoid
A guaranteed way to improve your budget position is to avoid impulsive spending which creates a 'false economy'. Students often go on spending sprees particularly in their first year during seasonal sales and buy 'must have' items which they consider to be bargains but are never or rarely use.
These items are commonly bought on revolving credit such as credit and store cards and mail order. All attract unaffordable rates of interest and will quickly drain your resources.
Remember, the ALF will be unable to help students who simply spend themselves into difficulty due to high expenditure or persistently spending beyond their means.
If you are in debt with creditors you should contact the Advice Unit who will represent you and negotiate on your behalf.
Debt Problems
If you anticipate debt or have a debt problem you may find yourself working your way into a panic.
Therefore, it is vital to regularly run a financial 'health check' on your money and to budget as much as you can. Most importantly, seek advice quickly from relevant organisations if things go wrong or you simply need a few tips.
There is nothing worse than ignoring the problem and letting it reach crisis stage, for example; imminent eviction from your house, disconnection of utility services or receiving a default notice or court summons for non-payment of bills before you are forced to seek advice.
Remember, most debts can be sorted out if you face up to them and seek advice quickly. There are a number of bodies that can help such as the Advice Unit, Citizens Advice Bureau, Welfare Rights Service and other specialist agencies.
Top tips for dealing with debt
- Don't bin or put aside those brown envelopes. Open your post. It is less stressful and time comsuming if you face up to the problem sooner instead of ignoring it or panicking until you are forced to face up to the reality of your difficulties.
- Seek advice and assistance from the Advice Unit or Citizens Advice Bureau who will be able to help you resolve the issues. You can also be referred to the counselling service in the student centre if required.
Don't go over your overdraft without authorising an extension first. Otherwise you maybe sanctioned by the bank
- You must deal with priority debts first such as rent, gas, electric, tuition fees, council tax, water because you can be evicted or disconnected but stores will have to take you to court first
Contact all your creditors (the people to whom you owe money) immediately and explain your difficulties in person, by phone or letter or ask the Advice Unit to do this for you. Creditors will be much more conciliatory if you get in touch with them and are seen to be making an effort to sort out your problems. Otherwise, you could be deeemed as someone who won't pay as opposed to can't pay.
- Only offer to repay what you can realistically afford. If you are unsure about what you should be offering your creditors, contact the Advice Unit for help.
- All creditors now request to see a budget sheet or financial statement as evidence of your difficulties, and you can use this to make an offer of payment. The Advice Unit can draw up a financial statement and consult with your creditors on your behalf.
- If the first person you speak to appears to be uncooperative, then ask to speak to a senior member of staff who may agree with your payment plan.
- Don't give up trying to arrange an agreement even if creditors are difficult.
- Always keep a copy of any correspondence you send or receive and make a note of every telephone call.
- Act quickly if you are sent a default notice or court summons. DO NOT IGNORE IT! Judgement maybe given against you. Contact the Advice Unit immediately.
