Kings Student Money Mentors

Understanding Borrowing & Recovering from Debt – NSMW 2026

Being a university student is exciting, but it can also feel like getting thrown in the deep end – you are suddenly tasked with managing your money to pay for bills, groceries and rent, all while keeping on top of your studies!

Naturally, it’s also daunting to handle student loans and debt. Borrowing money can come in many forms, like using your overdraft, taking out a student loan or using ‘Buy now, pay later’ models. Borrowing as a student is completely normal, but it is very important to learn how it works, especially when you’re trying to recover after a tough financial period.

Overdrafts

Some banks offer a larger overdraft than others, which may make them seem like the most obvious choice when selecting a bank. However, it’s important to remember that an overdraft is not free money!

Unfortunately, it is something that must be paid back to the bank, but they are there to support you. Relying on your overdraft as a means to get by is never recommended, but consciously using it to help you when struggling is precisely why it is there.

It’s very important to remember that you can be charged interest if you go over your arranged overdraft, so keeping track of your overdraft spending is key. Regularly checking your bank app and noting how much you owe is something I have found particularly helpful. Your overdraft does not have to be paid as soon as you graduate either (most banks will upgrade you to a graduate account, which may also come with an overdraft). Be sure to check what your specific bank terms are, but knowing this can prevent you from rushing to pay back your overdraft, causing you more stress in the process.

Student Loans

The use of student loans is very common, however not many people are aware of the process of paying it back. The payment is automatically deducted after a set income threshold is reached. Your income threshold will depend on the student loan plan that you’re on, but you can check on the UK Gov website here. Your repayment will be a percentage over this threshold, so graduating does not necessarily mean you will be paying your debt off. The amount you pay can be seen on your payslip. This means that your loan repayment is dependent on your income, not the amount of loan you owe. On top of this, after 30 years, your student loan gets written off automatically. As such, despite having a seemingly large figure to repay, the payments are small and relative to your income, so strategic planning can help you pay it off.

Priority vs. non-priority debts

Did you know that some debts are what’s called ‘priority debts’ while others aren’t? ‘Priority debts’ are things like rent, mortgage, gas, electricity, and council tax. If you have any of these debts, it’s important that you pay them off as soon as possible, as the consequences are very severe, from having your energy supply off or even losing your home. Once these are paid off, you can then focus on any other outstanding debts such as your water bill, credit card debts, or overdrafts. You can find more information and guidance on this at Citizens Advice or Step Change.

Be smart about debt!

When dealing with debt, it’s especially important not to make rash decisions. In stressful situations, some people feel tempted to borrow large amounts of money quickly to pay off existing debt. This is where loan sharks can become a serious danger. Whilst taking out a lot of money at once seems like a convenient way to pay off existing debt, loan sharks are notorious for causing more distress with their extortionately high interest rates, leaving people in a much worse position than before. Before making big decisions, it may help to make a pros and cons list to ensure your decision will help you out in the long-term. Asking yourself whether a decision will genuinely help you in the long term – rather than just offering short-term relief – can make a huge difference.

Understanding borrowing is the first step to recovery, allowing you to make informed plans. Recovery from debt can always seem intimidating, so don’t feel afraid to ask for help. There are many available support systems, like King’s Housing & Money Advice Service, to help you with any financial queries.

Hirra Yasir
King’s Student Money Mentor
Part of Money & Housing Advice

The King’s Student Money Mentors blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts. 

The Basics of Budgeting – NSMW 2026

One of the biggest challenges of university life – besides all the exams and assignments – is managing money! Getting the chance to study in the centre of London is exciting, but student life here can be costly.

I’ve personally had a long experience of budgeting, as a student who’s done both a degree where I moved away from home, and another as a commuter student. Each came with different expenses to consider, but as a result, I feel pretty qualified to share each of my experiences and the things I learned along the way!

When I was studying away from home, my biggest costs to consider were rent, bills, and food, but didn’t have to pay for travel, and I had a student loan to cover these expenses. Meanwhile now, I don’t have to pay for rent, but I do have some hefty travel costs, and I don’t have a maintenance loan, meaning I finance my expenses with part-time jobs. In both cases, I’ve budgeted, which has eliminated any money-related stress while allowing me to put money aside for fun purchases and saving for the future.

While the thought of budgeting may seem daunting (some of you reading might be imagining the horror of working with complex spreadsheets!), it’s a very straightforward process, and can be rather rewarding! Budgeting allows you to pre-plan and track your spending and potentially see where you could be saving. It really is a key skill that will be useful throughout your entire life, so it’s a great idea to master it now!

How do I start?

You can do it however you like – I personally use Microsoft Excel, as it means I can copy and paste monthly layouts, and it can do calculations for you. You can also do it on paper, or some Money Mentors like to use the BlackBullion Money Manager App.

I personally like to split everything into months, and I make a page for each month, but you can use whatever interval you’d like. Then, I note down my income: for many of you, this will likely be your maintenance loan, or from your part-time job. If you’re on a maintenance loan, it could be useful to divide the amount into intervals, to see how much you can spend each month without overspending. I have one job with regular shifts where I get paid the same amount monthly, and another which is a casual contract, so my income from this can vary each week. In this case, I treat my regular job as my income, and the casual job goes to extra spending, or into savings.

Once I’ve done that, I look at my mandatory expenses, which for me is my monthly TfL travelcard. For you, it could be your rent and bills. These ‘mandatory expenses’ are costs that must be paid on a regular basis, and the amount can’t be changed. I subtract my travelcard expense from my income, and this gives me the amount that I have available to spend on everything else.

The next category for me was essentials that can vary in cost – when I was living away from home, I did weekly food shops. But I found that if I planned carefully, I could reduce my spending. Since my local supermarket was a Sainsbury’s, I got myself a nectar card and used it every time I shopped. By the end of my degree, I had enough nectar points to pay for my entire weekly shop for several weeks in a row!

Once I’d allocated money to all the things I had to pay, the remaining amount could go to ‘fun purchases’ like shopping or day trips. It’s important to remember that you can still minimise your spending here – for example, I buy a Student Art Pass every year, which grants me access to paid museum exhibitions for half the price. (Just visiting one British Museum exhibition already pays off the card!)

Any other leftover money goes into my savings, and that’s my budgeting process!

Something important to keep in mind…

While planning out your spending is helpful, it’s important to still have fun! Sometimes it can be easy to get too wrapped up in frugality and you may end up cutting your spending at a cost to your happiness. Make sure to set aside some money for days out with friends, or shopping and restaurants.

If you do find that you’re consistently exceeding your budget, and it’s becoming a source of stress, then don’t hesitate to check out the Money Mentor Instagram account or our other blog posts for student deals, tips on saving money, and where to find part time jobs! You can also talk to a Specialist Adviser at the King’s Housing & Money Advice Service.

Angel Damonsing
King’s Student Money Mentor
Part of Money & Housing Advice

Introducing the King’s Student Money Mentors 2025/26!

Living on a student budget can be daunting, which is why the Money Mentors are here for you! We’re students who have been trained by the King’s Housing & Money Advice Service to confidently share tips on managing money, as well as our own lived experiences. Here we introduce the Money Mentors, as well as showing you where you can find us if you’re interested in learning more about part-time jobs, renting, avoiding scams, and saving money.

Meet the Money Mentors:

Hello! I’m Angel, and I’m a second-year Classics student – although I also hold a BSc in Economics! I joined the Money Mentor team last year and have recently taken up the mantle of Blogs Team Lead. I’m looking forward to passing on my fellow Money Mentors’ tips and experiences of enjoying student life while staying money-savvy.

Hi, I’m Claire, and I’m currently a fourth year medical student. I really enjoy being a Money Mentor because it gives me the chance to support students in a friendly, approachable way—whether that’s helping them build confidence with budgeting, sharing practical money-saving tips, or just having relaxed conversations about financial wellbeing.

This year, I’m especially looking forward to working with the other Money Mentors to come up with new ideas for the Blackbullion team and campaigns. I love being part of a team that genuinely makes a difference to students’ day-to-day lives, and I’m excited to keep growing in this role!

Hi, my name is Amber and I’m currently a fifth-year medical student. I joined the Money Mentors team three years ago and in that time I’ve been able to interact with new students, help organise in-person campaigns, create fun social media posts and share financial guidance with peers. I’m also a member of the Social Media team, so make sure to keep an eye out for content on our Instagram!

Hi! My name is Katharine and I’m a third year law student. I’m heading into my second year of being a Money Mentor, and what I love most is interacting with other students and offering solutions that I know will make a difference in their lives, even if it’s just taking advantage of student discounts. I look forward to working on our National Student Money Week campaign.

Hi my name is Hirra, and I’m in my 3rd year studying Medicine! I really enjoy chatting with students as they visit stalls (as well as the stress balls 🤭). I’m looking forward to another year of learning more about being money savvy and passing that info on!

Hi everyone, I’m Hope and I am studying in Australia this year as part of my Geography and Environmental Science degree. This is my third year as part of the Money Mentor Team, and I have absolutely loved everything about it- especially making social media content, delivering presentations, and chatting with students at our in-person stalls! Currently I am writing a financial blog series for the Money Mentors and Students about how best to plan, manage, and save money when studying and living abroad, and I am super excited to carry on writing that in the coming year .

Hello everyone! I’m Ilinca, I have recently completed my MSc in Public Policy and Management and I am currently working as a Project Administrator for the Money Mentors project. This year what I am most excited about is creating content, as well as preparing for our National Student Money Week campaign!

Hi, my name is Tom and I’m currently a third-year Philosophy, Politics and Economics student who has spent a semester abroad at the National University of Singapore. I became a Money Mentor not only to receive some income whilst taking my degree, but related to money, as this is such a vital part of student life. I am looking forward to meeting new people and helping other students to feel more secure in their financial knowledge, which will help them make the most of their time at King’s.

Hello! My name is Amaliia and I am a third-year BA International Relations student! This is my third year as a Money Mentor and I am very excited to be a part of such a driven team and help improve our community’s financial awareness.

Hi everyone! I’m Derin, a final year law student and I’ve been a Money Mentor for about a year now. My favourite thing about being a Money Mentor has been interacting with the student body during stalls but also learning tips and tricks from fellow Money Mentors in the process. I’m particularly looking forward to National Student Money Week.

Where to find the Money Mentors!

All of our important links can be found at our Linktree, or you can get in touch with us through our Instagram, where we post regularly about student deals, upcoming events, or our favourite money-saving tips. Alternatively, you can check out our Blogs page, where we share useful tips on all things money and housing.

You can find us in person at certain events throughout the year, such as National Student Money Week, or each year at Welcome Week. We advertise on our Instagram before any events so that you can find us and ask any questions you may have!

However, if you have serious or urgent concerns about housing or financial wellbeing, then please get in touch with the Housing & Money Advice Service, where you can speak to a member of staff and receive specialist guidance.

King’s Student Money Mentors
Part of Housing & Money Advice Service

The King’s Student Money Mentors’ blog shares our students’ personal experiences and thoughts on money-related topics. Any reference, opinions or recommendations on a particular company/brand are only the views of the student(s) who wrote the blog post. King’s College London, the Money & Housing Advice service and the Money Mentor project do not share the views in the blogs nor endorse any of the companies mentioned. Readers should conduct their own research before using any companies mentioned in our blog posts.