Debt

Covering accommodation and living costs can be difficult to cope with on a student budget or with your first wage as a newly qualified teacher, particularly if you have previous debts to repay, have a family to look after or if you have given up another career to train as a teacher.

Careful budgeting and some good advice on managing your money can help. 

If you are really stuck, consider some private tutoring, but remember that your student and induction years are so important you don’t want to stretch yourself too thinly. Contact ATL’s London, Belfast or Cardiff offices for guidance on suggested rates - don’t forget to keep a record of your income and declare it to the Inland Revenue.

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The Teacher Support Network (TSN) can offer advice and help for students worried about debt.
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The Teacher Support Network (TSN) can offer advice and help for students worried about debt. The following text is taken from their publication Starting out.  For more money management ideas, log on to the TSN website, where you'll also be able to assess the state of your finances using the budget planner and explore strategies for coping with debt. As a serving teacher, you can contact our money advisers at Teacher Support Line for budgeting advice or ideas on how to manage your debts. They can also check if you’re eligible for any Government benefits.

Some ideas for earning a few extra pennies

  • What about taking in a lodger?
  • Can you find extra income from exam marking or private tutoring?
  • Could you find things to sell, perhaps at a car boot sale?
  • If you have grown-up children, are they making a realistic contribution to household expenses?
  • Are you eligible for Child Tax Credit or Working Tax Credit? Check your eligibility at the Tax Credits website.
  • Check that you are receiving all the benefits you are entitled to as well as possible grants and bursaries by ringing Teacher Support Line.    

Cutting down on your expenditure

When things are tough, cutting your costs - even by a small amount - can make all the difference.

Alternatively, your local Citizens Advice Bureau should be able to offer financial advice and guidance.

Student loans

Student loans, intended to help students meet their living costs while studying, are fixed at a low interest rate and are issued via the Student Loans Company.  Once your course has ended and you start earning a certain amount (currently £15,000 pa), you will be expected to start to pay the loan back. The Inland Revenue, through your employer, will take your repayments directly out of your salary as they do with income tax and national insurance contributions.

The amount you can borrow depends on whether you live in London, whether you are studying full or part time, and whether you live at home with your parents or not. 

To be eligible, you can be on either an undergraduate or postgraduate training course. Everyone is entitled to 75% of the maximum loan available (this changes each year); whether or not you are entitled to the remaining 25% depends on your student/parent’s/spouse’s/co-habitee’s income.

To apply for a loan, contact your local authority; for more details, see the Student Loans Company website. 

If you need advice about investments, pensions or related issues, you should speak to an independent financial adviser. Call 08000 853 250 or visit www.unbiased.co.uk for more information.

Hardship loans

If you are a student teacher, remember that every FE and HE institution have hardship funds. To be eligible, you will be expected to have taken out the full amount of student loan for which you are eligible for; further details of eligibility should be obtained from your college’s welfare office, student services’ office or student’s union.

Pensions

If you need information about teachers pensions, please contact us and ask to speak with one of our pensions advisers.

Help and support

For further advice on this issue, ATL members can speak to their school rep, their branch secretary or their regional official. They can also call the London (020 7930 6441), Cardiff (029 2046 5000), Belfast (028 9078 2020) or Edinburgh (0131 272 2748) offices or email info@atl.org.uk

For out of hours enquiries, call the out of office hours helpline on 020 7782 1612 (Monday-Friday, 5-8pm during term time).

If you are not a member, join now.

Further information

Useful websites

Resources