What will uni costs be now if child has savings? Thresholds and fees?

[SprungisSpringYaY]

I'm just wondering what people have worked out uni costs to be now if a child has savings over 20 grand?
Will they have to fund it themselves? I recall a figure of about 9 grand a year for rent..
And they have to pay fees on top?

Asd 400 is a lot a month and as you say it really does not add up. Maybe if I can grow this £ they could do both.. Save some money on fees, maybe half... And have money for house deposit etc..

This really would not make sense. You are not understanding how it works. For a start you only pay £400 a month if you earn £79,000 a year. And you would pay the same monthly amount no matter what you owed. So if you owe £80,000 you pay it for about 23 years. If you owe £60,000 you pay it for 16 years. Realistically is your child likely to earn that much for 16 out of the next 30 years?

A new graduate is probably not going to earn anything like that for the first few years. They may pay nothing off at all for 10 years. Even if they have a well paid job, they may pay a bit then have a family and never earn enough again.

Plus even if they do end up in a well paid career, they can spend that £20,000 on a house whilst they are still earning less at the beginning of their career. If they avoid a student loan they won't see any benefit in take home pay unless they earn quite a bit. Meanwhile they will be trying to save for a house deposit on fairly low earnings, whilst spending on rent. And may need a bigger more expensive mortgage.

In my case out of the 15 years since I graduated I did a PhD for 4 years, took maternity leave for a year, then went part time and will probably earn barely more than the earnings threshold for several years yet. Currently my loan is the same as when I graduated as the interest is the same as what I've paid off. During the 9 years that I've worked full time I earned between £23000 and £35000. I fully expect to still owe the same in another 15 years when it will be written off. So whether I owe 60,000 or 80,000 makes no difference whatsoever. It would have been a complete waste of money to reduce my loan by £20,000.

A student loan can impact on a mortgage as it may limit the amount you can afford to pay each month.

It is if household income is over a certain amount etc, savings may affect maintenance for the first year but not his right to access fees. I'm about to enter my fourth year and because I lived alone since 17 it's on my wage alone and despite me being on 23,500 next year with my job i still get full fees and london maintenance of 11500

@someonelockthefridgealready

Honestly, it would terrible financial advice to tell your DCs to use their savings to fund uni entirely, when they could use the money as part of a house deposit/for life emergencies. No other debt will ever be so cheap and the repayments only when you're earning. I understand why debt makes you anxious. Just teach them healthy money management.

The debt isn’t cheap though, not anymore. The interest rate is a lot higher since a private company took it over from the government. DS is hoping to go this autumn and we’re contemplating funding it for him, so I’m watching this thread with interest.

You're right, I phrased it badly - I really meant "cheap" as in, you're unlikely to have to pay it all back. And if you do, it's because you're a very high earner. Unlike a mortgage, say, which you know you will have to pay back.

Funding studies if you are also going to be in a position to help with a house deposit, for example, is not necessarily the wrong thing to do, but it didn't sound like that was the case for OP.