Student finance help

[Cherrynight]

My son has just gone off to uni

i don’t work , no salary
so he gets bigger maintenance loan. £12k
but actually this has backfired because he’ll be paying more back. Is this right. Have I missed something?
so the poorer family gets given more now, but ultimately repays more?

Yes, he’ll leave uni with higher debt.

He won’t necessarily pay back more as that is dependent on more than the amount of debt you start with. It depends on his salary throughout the years of the debt, and depending on what that salary is, he might not even pay back more overall than someone on exactly the same salary.

Yes if it’s a loan he will need to repay it, but not until a certain threshold is met. There were grants and bursaries but they are few and far between now.
I had to get a part time job and uni to help me cover my student halls

Not really no.

The repayments are not based on the amount of debt. A graduate earning £30k who owes £30,000 debt will have repayments of exactly the same amount as a graduate earning £30k who owes £60,000.

If your son becomes very very wealthy and is one of the minority who actually get close to paying the debt back then it will make a difference as it will mean he pays those repayments for a bit longer - however he will only be in that category if he is earning a six figure salary and won't suffer particularly from that.

With plan 5, it’s not actually a small number who pay it all back. Latest gov estimates are that over half will.

but assuming he and his friends all repay their debts, he will pay more.

he will have 3x 9k & 3x12k
they will have 3x 9k & 3x 6k
that's a big difference

For the kids who get less, their parents are expected to top them up, or they have to work for it as their £6k usually doesn’t even cover rent.

If your child doesn’t need it, he doesn’t have to take it.

I feel guilty that he will have a bigger debt because of me

Yes you’re right, the system is unfair.

Will he need the full maintenance loan? Can he take a year out and save up some money? My dd took two years out and has saved £15k (and has done some travelling.)

He may be able to apply for a bursary as well.

The monthly repayments aren’t too bad though. My nephew is now on £40k not long out of uni and he is paying just over £100 per month back, still bringing home about £2.5k.

Yeah, he’ll need it
he’s worked part time for years so he can do that hopefully.

The whole system sucks. I have 3dds (twins so only planned 2). Dd1 is at uni on minimum loan - £5048 her rent is £9600. Add on living costs, we are subbing her £850 per month and we are expected to do this for all the dc. What normal, just above average (over £50k) family can afford £850x3 per month?

What course is he doing? What’s his expected salary after?

That rent seems high, my dd has just gone to uni and her rent for the year is £7500. She is covering general living costs from her savings and I’ll cover food (approx £250 a month.)

I think a lot of students will stay at home for uni in the future though as it is getting more expensive. I also think a year out to save money should be strongly encouraged.

That was mid range not ensuite or double bed but there were cheaper options although the difference was minimal and they weren’t on campus.

Friends and families kids have done various things. Some parents can afford to pay / sub their kids but choose not to. I do think that increasingly, people should carefully assess the benefit of it versus the fees - and also plan accordingly.

A lot of teens will work for a few years beforehand and save. I know some that have taken a gap year to work full time and save. Others have worked full time over the summer before uni.

Unless you are doing a v academic subject at somewhere like Oxbridge, or a vocational degree (nursing / medicine/ social work - you should be able to work quite a few hours around uni work and full time in the holidays.

Many more students are staying at home and going to local unis.

There are lots of options but they need to be thought through.

Mine are a bit younger but atm, they cannot see the value in many degrees as so many they know are working in fields that don’t require them.

The amount of the tuition fee part is 9k each yr so the extra 5k a yr for living costs probably makes very little difference.

Its crap as
some parents arent working or are cash in hand or SE
others are separated so only 1 parent earning

so what percentage are not getting full loan, i can see its many…

We need a student loan savings account. Where it doesnt count against the parents savings for UC.
Which gives back the tax.
which the kids cant just withdraw all at 18…

half of kids dont go to uni. A friend has 3 kids and none went. And obviously some then paid rent etc too.
Why would people encourage kids to go at a cost of 15k to parents..??