AIBU to wonder why the UK doesn't have a culture of saving for kids' University?

[windygallows]

I'm originally from North America where 'saving for College/University' is a big part of the culture, in fact it's quite normal for parents to take a college fund out just after baby is born. And understandably - University is really expensive in the US eg (tuition + living expenses of $30,000 pa).

I've had both my children in the UK (have lived here for 20 years) and do my best to put a bit of money into a college fund every month, even if its a stretch. When I mentioned this to a few friends they looked at me with amusement and asked 'why?' I've casually asked around if others are saving for college - some have put money aside but haven't specifically said it's for higher education. I haven't pried, just asked a few people so don't have a full picture.

However I'm finding it surprising that this isn't more of a concern for parents. In the UK University isn't 'free' anymore (eg. through grants), tuition is very pricey now, grants are rarely available, and student loans are shrinking. But it just seems like this hasn't been absorbed by many parents. Or maybe it has and I just don't know!

Before flaming me - I'm aware not everyone can afford to put money/savings away and I'm also aware that not everyone can or wants to go to University, so no need to debate that. I'm just questioning the seeming obliviousness to the dramatic change in the cost of University here.

AIBU?

Strictly speaking, not working or having a low paid job is a good way to avoid university fees.

as far as student loans go the people who pay least will be thise with very well paid jobs who pay their loans quickly and accrue less interest, and those who never pay anything back.

Never pay anything back because they never earn enough money.

GGW = well known MN poster with unique feminist views who I am trying to be nice to & not out her mediocre wage degree-bearing postman son.

tbf, OP tried to exclude people who genuinely can't afford it, from this discussion. Which is why I talked about the American tax breaks that encourage "college" savings, & don't exist in UK.

AbbeyRoadCrossing- With tuition fees, loan, grants extra my DS currently in Uni is accruing debt of about 8K a year, less than his English friends at his English Uni (we're Welsh so only pay £3K of up to £9K fees p/y). He won't start to pay any back until earning over £21K per year and anything unpaid after 30 years is written off.

It's an interesting point. If most mumsnetters do not earn enough to have to pay back student debt because most women go part time and never earn over the limit but most men who go to university will do then within individual families it might make economic sense to pay fees for sons but not daughters.

GGW well no, it doesn't, because how could you possibly know whether your daughter was going to work part time without making bullshit sexist assumptions?

Because sadly of all the marriages I see on MN and elsewhere where women put their careers second when they have babies and go part time etc. I hate, absolutely hate that is so and fight every day against it but the reality is still that women make that choice so are much less likely ever to pay the student loan back. I really wish it were the other way round.

Surely if you were truly wanting to fight against it you wouldn't make the assumption (while she was still a child!) that your daughter would get married and have children and go part time?

Can you imagine the message that would send to your daughters - I'm not going to pay for your fees because you are female? How exactly is that going to motivate and encourage them in life?

I'm too busy paying off my own student loan, the mortgage and saving for my pension to put money aside for my kids education

This, although I graduated in 1995 and have never been in a position to pay off my loan. Have never earned anywhere near the threshold.

Because sadly of all the marriages I see on MN and elsewhere where women put their careers second when they have babies and go part time etc. I hate, absolutely hate that is so and fight every day against it but the reality is still that women make that choice so are much less likely ever to pay the student loan back. I really wish it were the other way round.

I went part time when ds was born, for five years, but went back full time when he started school. There were no loans when I did my degree; dh paid.

I took a maintenance loan to do my PGCE in 2000 and had paid it off in 4 years. I then gave up work and moved abroad to be with dh on various military postings, and ds came with us. I regret sometimes that I am not still on the career ladder, but everyone was so happier when I gave up work. I have the time and the funds to travel, follow my interests, got involved at ds's school, and I have a far more relaxed life than if I were still working. Dh has always out earned me, and that wasn't ever going to change.

Everyone is different - what you think is your career path may well change, and after all, isn't bringing up the next generation worthwhile?

Thought GGW was banned for her outrageously anti-SN comments under one of her many previous username?

StillMedusa if there are, as you say, "an equal proportion" of state and privately educated medical students then privately educated students are massively over represented, given only 5% of children are privately educated. ..

It is difficult to know whether to pay up front or not. And it has to be remembered that accommodation is on top of those fees so you're looking at about £15K at least a year. That may be chickenfeed for parents who've been paying private school fees, but for most people £15K out of taxed income is a bit of a stretch to say the least.

But... if a dc is intending to be a surgeon/lawyer/cosmetic dentist then paying upfront, even if you later demand the money back with menaces from your dcs, makes sense. Obviously if a dc is thinking about being a potter, then it's a student loan without hesitation. But for most dcs - what would be best for someone achieving an income of about £45k?

I think the goalposts will change. Swathes of people who never intend paying back their loans is unfair. Giving preferential rates etc to dcs of low-income families whatever or wherever they are studying is unfair. A 30-year cut off is unfair. Either everyone has to pay or no one. And I've told my dcs that SAHMs are a dying breed. I don't think it will be an option for the next generation.

If you've got the money for tuition save it and then if the rates go up you can use it to pay the loan back. Paying up front is not advised- by Martin Lewis or anyone money savy.

Is my understanding correct that it is pay upfront or nothing? So you can't decide to repay your loan early? Or is there the facility to repay early but with a redemption penalty?

Doesn't make sense to save when the loan is on such good terms, although its not really enough to cover all costs. My parents expected me to cover costs myself for the most part, I think most parents expect the same.

DH had a student loan which was like 2% when savings accounts were like 4%, so obviously he borrowed from one & invested in other. It made financial sense. That's only 20 yrs ago.

Rhonda you can make extra repayments whenever and repay it completely without penalty.
Here

Excellent summary by Martin Lewis

Even before loans, it's a long, long time since maintenance grants were either widely available or enough to cover costs.

I put £20 into a saving account each month for DD, plus any money family and relatives give her. She is only 3 and has about £900 in savings. Assuming this continues we'll hopefully have about £6000 by uni. The rest will need to be loans. We pay a lot for childcare so when the childcare reduces then we can increase the amounts.

She might not go to uni but I like her to have some rainy day money regardless. Not sure when I will give her access to the money - depends how sensible she is.

It is a consideration for us but not high priority.