Student loan

Working out what student loan you need to study, work, and budget your way through university should be a degree in itself! A student loan is fine to help you pay for your university and living costs, but what about those times when you're waiting on money to come in and you need to buy or pay for something unexpected now?

There's a totally new way of borrowing money to see you through until your next cheque and it's called Wonga. A Wonga loan is essentially a short-term loan that can help you manage your cash flow - without having to extend an overdraft or credit card even further, or get a large student loan.

The problem with student loans

Student loans are usually far cheaper than your standard personal loan. But there can be a downside - you potentially end up borrowing more than you need, while a nasty debt accumulates for your gradation that could take years to repay. With a Wonga loan the interest rate is much higher, but you only borrow it for up to 30 days and pay the loan back on a date that suits. For those occasional emergencies or unexpected events, it means you can carry on with life without a long-term debt that keeps accumulating.

The Wonga advantage

It's pretty hard not to get carried away when you're a student on a budget and have the option to borrow large amounts of money with a student loan. But the problem with student loans is that they potentially encourage you to live beyond your means. They’re intended for living and education costs, but it’s all too easy to fritter away the money once you have it. Wonga encourages responsible borrowing because, depending on your trust rating, you can borrow between £200 and £750, as long as you can repay it within a month.

Put simply, the interest rate is £1 per £100 per day. Select how much you would like to borrow and the date you promise to pay it back and Wonga calculates exactly how much the repayment will be before you apply. Your application is done online and you can receive the money in your account within an hour.

Graduate with less student loans - and less debt!

The average student now leaves university with over £10,000 of debt. If you want to graduate with less debt, there's a few things you can remember now:

• Minimise your student loans by only taking out what you need, not the maximum amount available
• Try taking out small Wonga loans for emergency costs, when you know you can pay it off within a month
• Budget your money carefully and shop around for the best bank deals which offer students accounts with no charges
• Always keep an eye on your finances so you don't go into an overdraft and pay unnecessary bank fees

Don't be paying off your student loans years after you've forgotten what you spent it on! Only take out a student loan for exactly what you need and then use Wonga for those odd times when you've got too much month at the end of your money.