A university degree has never been so expensive and the rising cost of everything, from pasta and baked beans to rented accommodation, will not help undergraduates trying to stay out of debt. In our second feature on student finance, Times Money shows how to make each loan payment last until the end of term.

Budgeting

Draw up a weekly or monthly budget for food, socialising, clothes and bills - and stick to it. Catherine McGrath, of Lloyds TSB, says: "You can't throw caution to the wind and go wild with your cash. Part of managing your own budget is realising that you have financial limits and sticking to them."

A budget does not have to read like a diary of every purchase. The aim is to ensure that your outgoings do not exceed the amount you have coming in. There are a number of student budget calculators online, including the one at www.ucas.ac.uk.

Thomas Causebrook, a 21-year-old geography graduate, who studied at the University of Sheffield, managed to sidestep debt by giving himself a weekly allowance. "I would divide all my money by the number of weeks in the term, putting aside a small amount for emergencies," he says. "If you overspend one weekend, you can cut back the next and you shouldn't be caught short at the end of term."

If you need more advice on managing your money, speak to your student union finance office.

For more on this article please visit Stay on course to tame student debt

Source: The Times Online