On Monday 16th October Student Finance Week 2006 is launched. Run by the Department for Education and Skills, the week long event aims to raise awareness of the student finance package and hopes to ensure that finance is not seen as a barrier to those considering university. Many students and their parents are still not aware of the financial help available such as a non-repayable grant to help with living costs for the lowest income full-time students and loans that do not have to be paid back until students are earning over £15,000 a year.

Join award winning TV & radio presenter, financial expert Martin Lewis as he helps young people and their parents prepare for the financial challenges university life brings and how to overcome them. Martin is an ultra-specialised journalist, who spends his life focusing on how to cut bills without cutting back. As he has a postgraduate degree in Broadcast Journalism from Cardiff University, and is a graduate of the London School of Economics (where he was also President of the Students’ Union) he knows a thing of two about saving money at uni!

Financial expert Martin Lewis joins us live online on Wednesday 18th October at 5pm

Martin Lewis
Let me begin by saying there should be no-one who should be scared by going to university because of debt. Done right, student debt is very different to normal borrowing. In a nut-shell, you will be given a loan to pay for your tuition fees and living expenses which you will not have to repay until you leave university and only then if you earn enough. Yet, I'm only talking about the official Student Loans, not any form of commercial borrowing. Onto any of your questions on funding, borrowing or living life as a student, or any worries you may have as a parent.

Moderator
William would like to know "What are the three most important things to remember about financial survival at University.? All three of my children want to get to higher education but my limited finances won't be able to help them much!"

Martin Lewis
Rule number one: They are going to have to borrow, don't assume that all debts are the same. Student loan debt is the best type, followed by zero per cent overdrafts that come with your student bank account and pretty much all other debts should be avoided.

Moderator
William would like to know "What are the three most important things to remember about financial survival at University.? All three of my children want to get to higher education but my limited finances won't be able to help them much!"

Martin Lewis
Rule number two: Budget carefully. Normally the phrase is 'Don't spend more than you earn'. However, students don't earn - they borrow. My rule of thumb is - add your maintainence loan to any part-time work income you may have plus any money given to you by parents and count that as the actual amount of money you need to budget as your maximum spending.

Moderator
Tom Hoth wants to know "How will you know when I am earning over £15,000 a year and will this be before or after tax?"

Martin Lewis
It is £15,000 per year (before tax) that is the limit. This is paid through the payroll in the same way that you pay income tax so your employer will automatically pay the loan for you. If you are self-employed, you will need to declare it and play it through the self-assessment system.

Moderator
Grenda Jones says "Times have changed since I was at University and I am worried that my daughter will spend all her money on clothes, food and socialising-do you have any cunning tricks to save money on things like this?"

Martin Lewis
Well I'm tempted to suggest a lock and key! However, the real truth here is there is no greater gift you can give your daughter than a sense of how overborrowing and bad debt will leave her life scarred for years after she has finished university. By budgeting right, she can live a good student life. By budgeting wrong, she can be mired by debt throughout her twenties. I suggest she goes onto my website moneysavingexpert.com, and read some of the stories on the debt free wannabee forum. It's eye opening!

Moderator
Seth Bowlin asks "Hi Martin, at my Freshers fair lots of banks were offering student accounts. I opened one with a couple of banks as they were giving away great incentives (ipods etc). I landed myself in debt and am now trying to manage the repayments to no avail. What would your advice be to students targeted by these banks?"

Martin Lewis
Where to begin? First, student unions sell places at freshers fairs to banks for upwards of £20,000 (I know, I negotiated one when I was student president!) Yet, they don't look at which bank account is actually best for students.

Moderator
Seth Bowlin asks "Hi Martin, at my Freshers fair lots of banks were offering student accounts. I opened one with a couple of banks as they were giving away great incentives (ipods etc). I landed myself in debt and am now trying to manage the repayments to no avail. What would your advice be to students targeted by these banks?"

Martin Lewis
The key to picking a student bank account is ignore freebies and get the one which gives you the maximum zero per cent overdraft for the longest period. Currently it is the Halifax Bank of Scotland at £2750 per year, yet never go beyond that and remember, when you graduate you will have to pay it back - it is just to help your cash flow. Full details can be found on my website.

Moderator
Trevor would like to know "How would I apply for this support and do I need to supply personal information regarding my parents income?"

Martin Lewis
That depends on your personal circumstances. If you are over 25, or have financially supported yourself for three years (or though you do for someone who doesn't have living parents) or have a child or are married, you will be assessed on your own( and on your spouses) income.
However, if none of those apply, then yes, your parents will have to fill in details of their income.

Moderator
James asks, Can you tell me what are the various types of financial aide a first year student will be eligible for?

Martin Lewis
As already discussed you will be eligable for loans from the Student Loans Company to pay for all of your tuition and to cover living costs.
On top of that, if your parents (or yours if you are being assessed on your own income) income is less than roughly £38,000, you will be eligable for a grant ie you needn't pay it back to replace a part of the student loan. The actual amount you get is means tested and goes up to £2,700 if your income is roughly less than £17,000.
Plus, if you are getting that full grant and your tuition fees are the full £3000 per year, your university has to give a minimum £300 (non-repayable) bursary.
Plus, there are loads of scholarships available that you may not have thought of (one solely given for being the son or daughter of an airline pilot!). Try the scholarship search website or the Educational Grants Advisory Service.
Plus, your own university or students union may have it's own hardship or access funds which may pay out to you and there is special help for students with disabilities and/or student parents. Go talk to your student unions/university welfare office.

Moderator
Jim Knowles would like to ask "Are mature studenst able to have this support?"

Martin Lewis
In a word - Yes. Yet it is likely you will be assessed on your own income. See earlier response!

Moderator
Following on from that point, Liam Pemberton asks "I will be hopefully moving to London next year to study - are there any extra grants for london courses since living costs are so high?"

Martin Lewis
The main real difference is the student loan given to you for your maintenence (living) costs is bigger if you are in London.

Moderator
That's it folks! The one thing to remember is: do it right and there shouldn't be a need to worry about the debts. For more info, go to direct.gov.uk/studentfinance or for money saving stuff, my own website moneysavingexpert.com