Budgeting to survive as a tertiary student

By REBECCA WALSH

Thousands of students heading off to universities or polytechnics at the start of another academic year - and most will finish with a qualification and thousands of dollars in debt.

As student loan levels soar, what can students do to try to keep costs down?

The place of study and the courses selected can make a big difference.

Studying for a Bachelor of Arts degree will cost $3000 to $3600 this year, depending on the university. Medical and dental students are looking at fees of more than $9000.

Living at an Auckland halls of residence (meals included) costs $197 a week for a single study bedroom, or $167 for a twin.

At Waikato, the charge is $168 for a single room; at Otago, it is $206 a week.

Many universities offer self-catering apartments at a cheaper rate.

Flatting in Auckland can be expensive, ranging from $100 to more than $150 a week for a room. Average flatting costs in Hamilton and Dunedin are about $70 a week.

Students living at home have a clear advantage.

Marcella McCarthy, the manager of scholarships and financial support at Auckland University, encourages students to stay at home as long as possible, but warns that this can put pressure on relationships and might not be the best work environment if homes are overcrowded.

Living at home is not an option for many students and there is more pressure on rental accommodation, especially in Auckland.

Stewart McElwain, the group manager of student affairs at Auckland University, says demand for accommodation is up 5 per cent on last year, and 2600 applications have been made for the university's 1393 beds.

Around the city several privately-run apartment blocks are being built to cater for the growing number of international students.

To counter the impact of ballooning debt, more students will work throughout the academic year.

Bryan Smith, a Student Job Search manager in Hamilton, says that between March and September last year, the service placed 1846 students, compared with 1600 in 2000 and 1300 in 1999.

In Auckland, the number of placements fell from 8000 in 1999 to 7000 last year. At the same time, enrolments rose from 8500 to 14,000.

Mr Smith says the biggest growth area is tutoring. Students can make $18 to $20 an hour helping secondary school students.

Student ID cards make life easier, giving discounts for movies and price reductions on books and other goods. Secondhand books are widely available.

In Dunedin, some grocery stores offer free taxi rides for students. Otago University has promoted cheap airfares and a cheaper cost of living in the southern city.

Last year, 2000 Auckland area students attended Otago University.

As the year progresses, many students find their finances stretched.

Ross Burns, the president of the Auckland University Students Association, says it is not uncommon to hear of students who have saved only enough money for course books to last half the year.

Many first-year students do not anticipate extra costs for materials, such as art supplies or computer equipment.

Ainsley Sanderson, Waikato University's student financial adviser, says between 800 and 1000 of the university's 11,000 students sought advice last year.

She says adult students with mortgages returning to university struggle most. Many have families and hope that a degree will mean a better job and future.

Younger students are sometimes caught out by the cost of flatting, including a bond of two to four weeks rent as well as set-up costs for power, gas, television, hiring whiteware and insurance.

Others run into problems with big phone bills, often after a party at their flat. She says students need to remember that the person whose name is on the contract is ultimately responsible, and that a toll bar might avoid any problems.

Mrs McCarthy says that in Auckland last year, 4500 of the university's 29,465 students sought financial advice.

Mrs Sanderson suggests that students plan ahead and discuss finances with their parents or a budget adviser.

Other tips include:

* Live within your means.

* Do not take on other debt commitments, such as a stereo on hire purchase.

* Buy groceries at the supermarket, not the dairy.

* Save power with quicker showers.

* Think about increasing your income with part-time work (but allow time for study and relaxation).

* Avoid credit cards.

* Start a tertiary account, available at most banks and generally free of fees. Some also offer interest-free overdrafts.

* Watch out for 12-month fixed-term leases on flats.

* For those in financial strife, there are other options such as advance payments, special benefits or needs grants through Work and Income, or the institution.

Rising cost of study

A University Students' Association survey last month reported an 18 per cent increase in the average student debt, from $11,695 in 1998 to $13,743 last year.

The rise has been put down to an increase in course fees and living costs.

The Student Income and Expenditure survey of 1425 students from polytechnics, universities and colleges of education, also found that the average student bank loan was $4580 last year compared with $2538 in 1998.

Only 9 per cent of students surveyed were debt-free last year, compared with 21 per cent in 1998.