To think it's going to be a struggle to send DC to university now?

[coffeerevelsrule]

DC a couple of years off this now but it's beginning to worry me nonetheless.

My finances are as follows: I'm divorced and earn about £52k. Ex husband contributes nothing and I have to pay him £10k when youngest child reaches 21 as part of our divorce settlement. I have just over £21k in savings. I usually manage to save about £100-£200 per month - this is quite a bit less than a couple of years ago just due to rising costs and having to replace my car when it died last year. My mortgage is currently just under £700 per month and I also have about £5k other debts (low - 0 interest - unavoidable at the time).

Martin Lewis website said last time I checked that I should expect to contribute about £7k per child per year. This would have been a struggle anyway but now looks pretty much impossible. My mortgage is fixed for another couple of years and my fuel until next year. Both will rise massively just as dd1 is due to go to uni. What the fuck will happen?

AIBU to think that if inflation/interest rates stay like this they are going to have to look again at the thresholds for parental contributions but AIalsoBU to say they won't and university is going to become unaffordable for many?

It is quite common to put down the parent who earns the least so the student can get a bigger loan. It may not seem fair but it's not as if they are being given the money. It is a loan which they will most likely have to pay back. You can give them the extra that they had to borrow when you have enough money.

@EddieHowesBlackandWhiteArmy

I won't be explaining this quite correctly.
But In my firm, we have a benefits package that you can scale up or down and contributions are deducted pre-tax, so it does reduce that amount of your gross.

If I subsequently paid AVCs into another pension pot, that would not reduce the gross as I would claim tax relief later through my self assessment.

If they are highly academic they will be able to work. My DD was working between 18 and 30 hours a week when doing A levels, no A stars back then it was just before they were introduced, she got 4 As at A level and 2 As at AS level.

They can easily do say a Saturday job of 8 hrs and save.

Why doesn’t their father pay maintenance? Is it 50:50 care?

did your children qualify for the child tax free money gifted by the government. Not sure what the age range is.

It is an expectation parents top up the difference and many people don’t realise student loans are means tested now. There are options, student takes a gap year and earns and saves to make up the 7k shortfall, or you contribute what you can, and they work part time. I don’t think it’s fair when parents don’t top up at all.

OP I worked significantly (25-30 hours a week) while attending a top uni and getting good marks. It’s absolutely possible. It’s also absolutely reality that sometimes kids don’t get to go where they want because of money. It’s tough as a parent to have to tell kids that.

I find it odd that you were shocked. In the 80s most parents paid if their children didn't get the full loan/grant because of parents income. I think it was explicitly stated if parents were meant to contribute (hence the fact their income is taken into account) and I think they are bringing this back as many people don't seem to get it. Students will gain work experience from working in the holidays.

They could take a couple of years out before starting uni , get jobs and save up.

Or could go on a funded degree through a high level apprenticeship. I have two godchildren- one has qualified as a chartered accountant and one as a surveyor on high level apprenticeships with really prestige companies - who have employed them on decent salaries throughout and paid for them to complete professional qualifications and university course. Both now finished training and have been kept on permanently earning £50,000+ at 23 and 25.Really hard work but has paid off and both have just bought their first properties. I think it's a great route. They have no student debt either.

Accomodation costs can vary massively, depending on where your DC decide to go to university. Your DC can decide if they want to live in a cheaper city and not have to work as much, or live in an expensive city and need to work significant hours in a part-time job. The prestigious universities aren't all in expensive cities, so they should be able to find one within budget. Or they can work for a year or two to save up. These are all options open to them, you don't really HAVE to fund anything, and university certainly isn't beyond their reach for financial reasons.

My DD is at uni she works during this holidays & this tops up her finances.
Maybe you'll have to make cutbacks for yourself DD to attend? Is that possible?

I agree with @NoSquirrels . It is normal to want it all for your kids but that might not be feasible. And you know what, that's the situation plenty of people have to deal with. I was offered Cambridge but there was no way I could've afforded it, so I went elsewhere. I would love to do a PhD now, but I can't afford it. I have all these brains and academic leanings and I can't do what I want with them. That's life. Your kids will get to uni but it might not be the exact way you envisaged. They can still fly high, nevertheless.

The best thing to do is get them to get work before going to University because then they can work during their studies.

It is doable; I work 25 hours a week and study at one of the best universities for my course; I've just learnt to prioritise and manage my time effectively. I am expected to get a First, but we will have to see.

I worked both days, full days at the weekend for 2.5 years of my degree. I sacked it off in April of my third year to focus on finals for the last few weekends.

For the first month or two I felt like I was missing out on a social life in halls and study time, then a couple of my friends confided separately that they really wished they had jobs (both incredibly well off and no need to work) because weekends were so dull, and they envied me having another circle of friends! The study time was never particularly a problem either, it just all sort of fitted in nicely.
One of the non-working friends found it incredibly hard to find employment after uni as she'd literally never had a job. Beyond studying she had nothing to write about.

Honestly, don't discount working. It's not just about paying their way. Unless they're doing a full-on, 40 hours per week of contact time type subject, there is time.

Why would you pay? Majority of students pay their own way by working and loans.

I got myself through uni without any help from my parents.

Mid week paper round from 14.
Saturday job from 15.
Extra work in holidays from 16.
Couple of years working between school and uni.
At uni I had a part-time job and worked every single holiday.

To be honest, I don't actually know how I did it. I could have done much better academically if I had focused solely on studying but it is what it is. I was the first person to go to university in my family and I was determined to go.

If he wants to go (and you do too), you'll make it work.

What a stupid comment. The maintenance loan is based on parental income, with the expectation that the parent makes up the difference. OP thinks she is expected to pay, because that is what the government says

I think I’m still confused as surely all that does is reduce your net as in order to make the contributions your gross still has to be X. I get that it would reduce the amount t that you pay tax on but your gross still remains that overall figure which is what the SLC base your income on. Totally willing to be told I’ve got it wrong as not remotely an expert!

Exactly, and it is my understanding that this will be made explicit to both parents and students in the future so students will know that their parent is meant to contribute. People thought really badly of parents who did not contribute the amount they were meant to in the 80s and I think that will come back. Yes many students do work, but that's not necessary because their parents are not contributing. It's often just because the cost of living is so high.

I think based on income after pension contributions so you can make your income lower by contributing more to pensions.

Yes, it's your income after pension contributions.
You can pay into AVCs or into a pension - both have the same effect of lowering your income for student loan purposes

I can really understand wanting the very best for you dc, it is natural and what all loving parents work for.

But there are many paths in life and sometimes having to struggle and compromise can help build resilience.

A life where you pass all your GCSE's, A Levels, get into a top Uni to do the course of your dreams and where you are financially comfortable throughout, doesn't really set you up for the real world.

My ds is academically very good but so many things have got in his way over the years that he is making choices about his future based on the practicalities of his situation.

At 15 he is already making his own decisions and they are good ones which will serve him well in his future.

I am more proud of him for than that I ever could be for getting into Oxbridge.

Obviously I will be at the right age to withdraw yes. Lol!

Not true. Most school age students have help from their parents . I didn’t but I will make sure my dcs do.

Ah ok, I thought it was just your gross salary. As I say, I didn’t bother filling it in so useful ti know should anything dreadful occur with DH or i job wise!