Student money

But mock not. Those 3,000 fresh-faced Oxford University and Oxford Brookes undergraduates arriving this month for their first term are the bedrock of the city's ongoing prosperity: almost every one of them (not to mention postgraduate students) will come armed with £3,475 from the Student Loan Company to cover their living expenses this year, most of which will be spent in Oxford.

That money will arrive in Oxford on top of tuition fees, also loaned by the Student Loan Company and worth £3,145, much of which will find its way into the local economy through academics' salaries, etc. Both those basic loans are non means-tested and are available alike to the children of millionaires or people on family support. But how exactly do all those young undergraduates manage?

If they are British and resident in the UK, and their parents' household has less than £61,000 coming into it each year, the students will qualify for an extra maintenance loan, or contribution towards living expenses, of £1,150.

And if their parents' or sponsors' income is less than £20,000, they will also qualify for a non-repayable maintenance grant (not loan) of up to £2,835 (though there is a trap here: their loan entitlement could decrease).

In any case, when all the complicated sums are done, a Brookes student who qualifies for maximum help will receive £8,000 a year to live on, while his or her counterpart at Oxford University will receive £9,350, plus a one-off £850 "golden handshake" for their first term.

The reason for the difference is that the Brookes student can only claim a maximum of £1,800 as a bursary from the university, but the Oxford University student can claim £3,150 as a maximum bursary (plus the handshake) — thanks to Oxford Opportunity Bursaries scheme, introduced in 2006.

Apart from the loans for which every student qualifies, parents or guardians are expected to contribute more or less money according to a sliding scale based on their income.

Christ Church history undergraduate Stuart Cullen, 19, just about to start his second year at Oxford University, and about to take up residence in a shared house, said: "Money should not be a problem at Oxford. If you put in time you can find help out there in addition to the £3,000 a year from the Government. We are very lucky in that way at Oxford, but you do need to ask advice from your college, from the university, from the Student Union.

"There are bursaries available. Simple things like a £150 book grant, or awards towards travel abroad. Then of course there are subsidised meals in college. And you need to look at faculty websites too."

He agreed that Christ Church was a comparatively rich college, but added: "It is true that there is a disparity between colleges. Some are richer than others, but the university, too, has hardship funds. There is a lot of help out there, but you do need to plan ahead."

Planning ahead is necessary, too, for finding somewhere outside college to live. All Oxford University students live in college for the first year and then many move out, either because the college has no accommodation for second years, or simply because they want to.

Stuart said: "You need to find somewhere to live already in November for the following year. If you leave it till the last minute you'll find that only the bad and expensive places are left."

According to Oxford City Council's private sector strategy report for 2007-10 more than 20 per cent of Oxford's 55,585 dwellings are privately rented.

He added that Oxford landlords seemed to be a"good lot" from information he could gather. Nor did he resent the need to plan so far ahead, noting that it was important to learn the necessity of forward planning in life.

Interestingly, Robin Swailes, of property rental agents North Oxford Property Services, who in November sometimes witnesses queues of students outside his agency, reciprocates. He maintains that in general students make good tenants.

He reckons that students generally make better use of space than professionals, paying less rent each but producing a higher rent overall.

He told The Oxford Times that landlords and tenants are in a win-win situation: "The students gain due to the decreased cost per room as they utilise the space more efficiently, perhaps using the dining room as a bedroom, and the landlords gain as they increase their rental return."

And not long ago the chief executive of leading buy-to-let lender Paragon Group, Nigel Terrington, commented: "'Despite the 'Young Ones' image of students being rowdy and destructive tenants, the reality of modern student lets is quite different. The days of grants have long gone and students are more focused to make the most of their student debt-financed opportunities."

He added: "Many students demand the best. Students often come into our office with Gucci handbags, £300 jeans and top dollar shoes. Students are more discerning, and we need to supply what they need."

Student Stuart, who says he attended a private school outside Edinburgh before starting university, said: "Obviously, some students have far more money than others, but I suppose that is just life."

He works during the vacations but does not recommend working during Oxford University's eight-week terms, since the amount of academic work is just too great.

And what does he think of starting life in debt? This year, the rate of interest on student loans is 3.8 per cent, which they will start paying off when their income reaches £16,000 a year.

He said: "It's not ideal, but that is just how it is."