Student money myths

Find out the truth about the student money myths here!

With countless students moving away from home for the first time and being presented with their shiny new student bank accounts and loans, it’s hardly surprising that a lot of term time talk will focus on money. There are countless money myths concerning London’s student population – either regarding those who’ve made a mint, or those who’ve lost everything! Here, Scape Student Living take a look at four of the most popular student money myths, and ask whether or not there’s any truth to them...

The 2nd student bank account

This is a popular money myth that you’ll hear in the campuses of universities across the country, not just here in London. The story goes that a dedicated party guy quickly blew his student loan, along with the overdraft from his student account, on beer and takeaway food. Undaunted, he applied for a second student account and quickly blew that overdraft, too. Different versions of the story continue the chain until the poor boy is truly destitute.

Is it feasible? There’s no reason why a person couldn’t have two student bank accounts if they were careful not to let the lenders know about it.

Should you try it? In short, no. A student loan and one overdraft should be more than enough cash for anyone. You don’t want any additional debt and a shaky credit score to go with it once you graduate. If you’re really running low on funds, follow the advice on the website and talk to your student support service about any extra help that may be available.

The debt-free stripper

Ever heard the one about the student who took a part-time job as a stripper to pay her tuition fees and graduated debt-free? It’s a popular story, and everyone seems to know a friend of a friend who’s done it.

Is it feasible? Contrary to popular belief, rookie strippers aren’t paid particularly handsome salaries. Just like waitressing, tips can vary, and many establishments will want to take a cut of those, too.

Should you try it? Ultimately, it’s up to you how you want to augment your student cash supply, but there are far more effective – not to mention pleasant – ways of making a few extra quid out there. You never know what your future may hold; it’s worth considering the damage such a choice could have on your later professional and family life if it comes to light.

The student loan dodger

– We’ve all heard this one, haven’t we? A graduate moves abroad after finishing university in London, and after five years of living overseas, that debt is written off. Can it possibly be true?

Is it feasible? Individual student loan companies have different terms and conditions when it comes to repaying your debt, but none will be so naive as to offer you a get out of jail free card like that.

Should you try it? Everyone will need to pay back what they owe as soon as they start earning over a specified amount – there’s no getting past it, so the sooner you’re in a good graduate position and earning a comfortable wage, the better.

The big win

In most instances this may be a myth, but we did personally know of a student who won a large sum of money on a TV gameshow and immediately paid off her student loan. Some stories talk about scratch cards, online poker and lottery tickets and may not be so easily verified, though!

Is it feasible? Of course! Even the lottery needs a winner, but don’t kid yourself – the odds of it happening to you are slim indeed.

Should you try it? There’s no harm in you putting yourself forwards for TV gameshows or buying the occasional lottery ticket, but be wary of gambling addiction. There are more losers than winners when it comes to betting and even though someone might get a payout every once in a while, in the end the house always wins.

It’s natural that most students will worry about money at some point. If it’s a real concern for you, contact your university’s student support service, who may be able to offer extra support and guidance. You can also keep updated with our blog and Wordpress, which regularly include tips on saving money while living in London.

Where next?