Tomorrow's Pharmacist October 2000 p18-21
Edited by Pamela Mason

Money

Student finance

By Jane M Blyth, BA (Hons), FCIB

What, if anything, can you do to minimise debt? Financial planning is crucial.

Studying to be a pharmacist involves four years at one of the 16 UK universities around the country, followed by one year's preregistration training in a pharmacy. Although you will be paid when you work in a pharmacy - either in your vacations or as a preregistration trainee - you may not always have the time during your years of studying to earn any extra money to top-up any grant or student loans.

Debt

After graduation, you may therefore find yourself in debt to the various institutions who have loaned you the finance to fund your extravagant lifestyle! This could include the student loan company, the bank, your student overdraft and your credit card bill. It is therefore imperative that you are aware of all the expenses that you are likely to incur before you start your training, otherwise it could come as a nasty shock!
While the above scenario may not fit your own circumstances exactly, you will find elements within it that will prove to be not too dissimilar from your own situation, either in the present or in the future. The time will come when you will need to take stock and prepare for the inevitable repayment of the outstanding debt.
To do this you will need to know the answers to the following questions:

• How much do I owe exactly?
• Who do I owe the moneys to?
• When will I be expected to start repaying it?
• How much will I be asked to repay to meet my minimum obligations?
• Does my bank understand what I have done, what I am doing and what the likely rewards will be when I qualify?
• Do I have a bank manager that looks after my account personally, that I can talk to on the telephone and face to face in person?

Ideally, you should prioritise between long term and short term debt and be looking to clear overdrafts and credit cards first. If you get into financial difficulties with credit card debt, do not ignore the problem. Speak to the company concerned and arrange an affordable repayment plan. Remember - a county court judgment could seriously jeopardise your career.
If you have a training loan, ensure you know when repayments will commence and ensure your bank account has sufficient funds to meet those repayments. Do not expect the bank to remind you of these dates.
Student loans should also not be ignored or forgotten. The student loan company will write to you every year asking about your financial circumstances but will not expect repayments to commence until you are earning the required salary under the scheme. Remember to advise the company if you change address as that will affect repayment of the loan under the direct debit scheme.
Student overdrafts can be consolidated into an interest free or low rate graduate loan over three to five years and this will often be the best way to tackle this problem.

Banks

Choosing a bank can therefore be very important. Indeed, at the outset it is very important that you are aware of how the various banks can help you before you start your studies and throughout your student life.
Experience of dealing with students can vary between branches of the same bank - let alone different banks. Do not be afraid to change banks, as the next few years will probably be the time when you are in most need of your bank's help and understanding. Having a manager who knows and understands what you have gone through and will be going through, can help tremendously.
When choosing your bank, the location of the branch will be very important to you. Choose one that is close to your university and has experience of dealing with students and particularly pharmacy students, if possible. You will also want to be with a bank that provides a good service, and you may wish to speak to the bank's representatives and/or ask a colleague to recommend which one is best. You could ask your present branch if it has a unit or manager that specialises and deals with pharmacy students.
At NatWest we have a range of products and services on offer for students and graduates alike, including loans, overdrafts, travel facilities and insurance. We also have a team of student banking advisers located at branches all around the country who will be happy to discuss your financial requirements before and during your studies.
Our NatWest professional trainee loan scheme has been devised to assist you with the costs of particularly expensive or lengthy courses, thereby allowing you to concentrate on your studies. We understand that when you are training for a professional qualification, paying for all your course and living expenses can seem quite daunting.
If you have finished your first year of study of your pharmacy degree and would like to borrow some extra funds to help you through the rest of your time at university, our professional trainee loan scheme can help you. It comes with an attractive and low interest rate and the best news is that you are not required to make any repayments until after you have completed your studies. Loans are available for up to £15,000 and you have 10 years to repay the loan, which does not start until six months after you have completed your studying. There are also no fees whatsoever for setting up the loan in the first place.
NatWest works closely with the British Pharmaceutical Students Association (BPSA) to ensure its products and services are tailored to suit the needs of today's pharmacy students. The BPSA has recognised the quality of our professional trainee loan scheme and has given the scheme its own endorsement. In addition, the association is keen to promote the scheme to all its members via student seminars and careers days, at national conferences and in a wide range of literature.
We also have expertise of dealing with the pharmacy sector through our professions unit and our network of professions business managers, who have detailed knowledge of the needs of all the professional sectors and have up-to-date know- ledge on developments within them.

Miss Blyth is a director of Intrabank Expert Witness and Consultancy

Tomorrow's Pharmacist is an annual publication produced within the editorial department of The Pharmaceutical Journal