A well-planned gap year is great way to impress potential employers. So what do you need to know before you go ? and what pitfalls should you avoid while there?Until now, most young people have regarded taking a gap year between school and higher education as a well-deserved period of rest and recreation after four years of exams.But not any more: the near trebling of tuition fees by many colleges and universities from October 2012 ? combined with escalating unemployment ? means that many aspiring students can no longer take time out.Because of the threat of higher fees, the number of people applying to defer a university place dropped from 16,000 in 2010 to 6,000 last year.Among those who still aimed to take time out, American Express found that 43% planned to earn money and gain work experience, while less than one in five thought they could spend the time relaxing.Research for gapyear.com found that 63% of HR professionals thought a year spent volunteering or gaining work experience overseas made a job application stand out, while 85% agreed relevant work experience was more valuable than the average non-vocational degree.Tim Fenton, general manager of gapyear.com, says: "Interest in volunteering or working abroad is definitely on the rise, as are more challenging destinations like south-east Asia and South America."It is important when you sit down in front of a prospective employer to have a good story to tell and a well spent gap year is a great way to create that story."Why you need incomeStudents who have scrambled to get their university applications in to Ucas by the 15 January closing date face another, much bigger, task ? to ensure they have enough money to see them through their chosen course.From September 2012 the government will offer two types of loan.New full-time students in England and Wales will be able to borrow up to �9,000 for tuition fees in the 2012/13 academic year. They can also take out maintenance loans for living costs of up to �7,675 (for those living away from home, and studying in London).But while the loans on offer to this year's students have an interest rate set at 1.5%, those starting in September 2012 will accrue RPI plus 3% from the point at which they take out the loan until April 2016.From that date they will be charged RPI if they earn �21,000 or less. If they earn more than �21,000 their interest rate will taper upwards. It is capped at RPI plus 3% once they reach �41,000.Graduates currently start repaying their student loans once they earn �15,000, continuing for a maximum of 25 years. Any debt left after that is written off. But those on courses starting after 1 September 2012 will start repaying when they earn �21,000. It will be at the rate of 9p in every �1 earned over �21,000 until the debt is repaid, or 30 years have passed.This prolongs the agony, but makes the monthly payments more affordable: a graduate earning �30,000 would pay �112.50 a month under the old scheme, but �67.50 under the new.Maximise savingsOlibray, posting on gapyear.com, recommends seeking work in Australia: "You will earn 30% more than in the UK, that could make quite a dent on the fees next year."You won't necessarily want to choose the places you travel to according to how much you can earn, but there are still things you can do to maximise the amount you save.? Choose the best credit card if you're abroad for any length of time, choose a debit or credit card that doesn't charge 2.75% every time you make a transaction. Metro Bank's current account has no minimum monthly funding requirement and offers debit and credit cards with no overseas charges on purchases or cash.The Norwich and Peterborough building society current account comes with a debit card with no foreign transaction fees. It is free if you pay in �500 or more a month, otherwise there is a �5 monthly charge. This will be worth paying if you are using your card overseas.The Halifax Clarity credit card has no overseas charges. Sainsbury's Finance gold card has a �5 a month charge but no foreign charges and includes comprehensive travel insurance.It's essential to set up online banking before you go so you can manage your money while abroad. And make sure you advise your bank and card providers that you will be travelling: they are likely to block your accounts otherwise, suspecting fraud.? Consider a pre-paid card, says Bob Atkinson, travel expert with Travelsupermarket.com, recommends pre-paid cards from Fair FX and Caxton."These can be used to pay for goods and withdraw cash with minimal (if any) fees, are pin protected, backed by either Visa or Mastercard, and can be topped up online as you go along," he says."You cannot go into debt and they can be replaced if lost or stolen. You can top up from your current account online."However, he has a warning about using pre-paid cards when checking in to a hotel or hiring a car."They will have an amount pre-authorised by the hotelier or car rental company."That locks the funds, even if they don't need to charge you. Use a credit card, instead," he says. ? Make sure you know what visa you need, especially for working, says Atkinson. Organise this before leaving the UK. "There are companies who arrange gap-year travel 'experiences' or 'work'," says Atkinson. "However, they can overcharge for something that you can arrange more cheaply independently." ? Shop around for your air fare. It pays to get advice, says Atkinson, as a clever consultant can shave hundreds off itineraries, especially when complicated. ? Acquaint yourself with the tax regime at your destination to ensure you don't end up overpaying.For example, gappers going to Australia should apply to the Australian Taxation Office (ato.gov.au) for a tax file number before they head off down under ? this is essential to avoid paying emergency tax at 48% when you arrive.In the US, exchange visitors only pay federal and state taxes, not social security, but still need to apply for a social security card. For information on a wide range of tax regimes, Lonely Planet recommends visiting the international section at taxsites.com. ? Buy adequate insurance. For trips longer than one month you may need a specialist policy, and you should also consider whether you are likely to do riskier activities such as bungee jumping, water sports or skiing and ensure your chosen policy will cover these.Check that your policy covers you while working or volunteering, especially if you are doing any manual labour, as this is often not covered by a standard policy. Visit Moneysupermarket.com. ? Don't go mad on your mobile phone. Although the cost of calls, texts and mobile data roaming are capped in Europe, there are still hefty charges elsewhere in the world. Many readers have been shocked to receive bills costing hundreds, and in some cases, thousands of pounds after internet browsing.Mobile providers typically charge per megabyte but some do offer a set amount of data allowance for a one-off cost.Examples of data usage are: web browsing for one hour = 1.5Mb; downloading/uploading a quality jpeg/image = 2Mb; music downloading = 3.5Mb per track; opening emails = 1Mb per 20 average-sized emails.Don't forget Turkey is not yet part of the EU: making a call there with Vodafone can cost as much as �1.65 a minute, while receiving a call can cost a hefty �1.50 with T-Mobile.Elsewhere, data roaming can cost a substantial �8 per MB with Orange. Vodafone applies a cap outside of the EU, putting a block on accessing data when the bill reaches �100.You can cut the costs of calls and texts outside the UK by arranging with your provider to opt-in to a specific add-on. Vodafone, Orange and O2 offer the best deals, according to Mike Wilson of moneysupermarket.com.Before you go Check your passport is valid, ideally for a minimum of six months after the date you plan to return to the UK. You should also check whether you require visas for the places you plan to visit.Bear in mind that these can take several weeks to arrange and are rarely free. Check with the relevant embassy/ies and start the application process once you have booked your flights.Budgeting is boring, but necessary, if you don't want to run out of money half way round the world. Decide on a total that you are looking to spend, including your air fare and taxes as well as transfers, accommodation costs and food. Remember extras such as souvenirs and sight-seeing.And don't forget to let people know where you are ? the Foreign and Commonwealth Office operates a scheme called Locate at fco.gov.uk.You can register your contact details before travelling, enabling the FCO and your family to track you down in the event of an emergency or disaster. The same website also has lots of general advice for travellers including those taking longer gap-year style trips.Consumer affairsTravel insuranceInsuranceBanks and building societiesInternet, phones & broadbandGap year travelGap yearsStudentsJill Insleyguardian.co.uk © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds
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