After Graduation

Once you have graduated and you are no longer a student this can affect a number of finance related issues which you may not have thought about. Some things to think about are:

Repaying Debts to the University

If you have accrued any institutional debts such as unpaid accommodation costs, library fines or emergency loans you should seek to clear these debts before your graduation ceremony. You will need to contact the relevant service in order to discuss any outstanding monies. If you have accrued other debts with external organisations whilst you have been a student you might find it beneficial to seek specialist debt advice to help you manage these debts. The Student Advice Centre can assist you for up to one year after you have have graduate or you can consult an independent external agency such as National Debtline or the Consumer Credit Counselling Service. These services are independent charities and should not charge you for the debt management advice they provide.

Repaying your student loan

If you funded your studies with an income-contingent loan from the Student Loans Company you will be expected to start making repayments in the April after you graduate if you earn over the repayment threshold. The amount you repay will depend on your income and what you are earning. The first £15,000 of your annual income is ignored. Your repayment is worked out as 9% of anything over this amount. You will make your repayments through the tax system and this will be deducted from your pay; you should let your employer know that you have a student loan.

It is important to keep an eye on your own repayments so you know when you are due to finish repaying your loan and you can regularly check your account online on the Student Loan Company repayment portal

For more detailed information about repaying your student loan see: Guide to Repaying your student loan (PDF: KB)

Interest-free Student Overdraft

As a student you may have held a student bank account which had a large and interest free overdraft attached to it. Prior to graduation you should check the terms and conditions of your overdraft and student bank account to find out what will happen to them after you have graduated as some banks may:

  • convert your student account into a ordinary current account thus removing your interest free overdraft
  • significantly reduce your overdraft facility
  • offer an interest free overdraft for a short period of time

Check with your bank well in advance of graduation so you are prepared as exceeding authorised overdraft limits can result in high penalty and over limit charges being applied to your account on a daily basis. You might want to compare the various graduate bank accounts available to see if you can get a better bank account with another bank.

Council Tax Exemption

Once you cease to be a student you will no longer be exempt from paying council tax. You will be liable to pay council tax until the end of your tenancy agreement, even if you move out of this property.

TV License Refund

If you are leaving your accommodation during the summer and will not use your license before it expires you can claim a refund for any unused quarter (three consecutive calendar months). For information on how to do this see TV Licensing - Students.

Tenancy Deposit

At the end of your tenancy, check whether you are leaving the property and its contents in the condition in which it was let to you and check that you have paid your rent and any other expenses. You should then agree with your landlord or agent how much of the deposit should be returned to you. If your deposit is in the Tenancy Deposit Protection Scheme this should be returned to you within 10 days. If you have any problems with your deposit being returned you can seek advice from your local Citizens Advice Bureau .

Benefits and Tax Credits

Usually you cannot claim any benefits until after your official leaving date. Once eligible you should make an application as soon as possible as you will not be able to get backdated payments unless you can prove there was a good reason for not applying sooner.

Job Seekers Allowance (JSA)

If you do not secure employment upon graduation or you work for less than 16 hours per week then you could be eligible to make an application for JSA. This is a means-tested benefit so any income, savings or capital you have will be taken into consideration. You will need to meet the qualifying conditions of the benefit and enter into a job seekers agreement. In order to make a claim you should contact Job Centre Plus on: 0800 055 6688. Further information can be found at: www.jobcentreplus.gov.uk

Local Housing Allowance

If you have a low income and are renting a property or room you may be able to claim Local Housing Allowance which can help you to pay your rent. This is a means-tested benefit and what you are eligible to receive will depend upon your income, the area where you live, the number of occupiers in the property and household size. To make a claim you should contact your local council. Further information can be found at: www.direct.gov.uk

Council Tax Benefit

Once you cease to be a student you will no longer be exempt from paying council tax. If you have a low income and are liable to pay council tax you may be able to claim Council Tax Benefit. This is a means-tested benefit. To make a claim you should contact Job Centre Plus on: 0800 055 6688 and submit a claim form to your local council. If you are the only person in your household who is liable to pay council tax you may get a 25% discount regardless of your income.

Further Study

If you are intending to undertake further study you should look carefully at the sources of funding which are available to you. If you are intending to undertake a second or subsequent undergraduate degree then you may have limited entitlement to statutory funding, you should not assume that you will receive a maintenance loan and tuition fee loan for each year of your course. If you are intending to undertake a postgraduate course you should start researching sources of funding about 12 to 18 months before the start of your course. No statutory funding package is available for postgraduate study (except for a PGCE). Funding can be obtained from a variety of sources such as Research Councils, bank loans and charities. You are responsible for securing enough funding to undertake your course.

Employment

For further information and support about your options after graduation you can contact the Careers Service