Student loans not rising to manage rents increasing

[B00kmark6525]

What are families supposed to do?

£400 rent shortfall this term when we’re already having to pay £300 a month so he can eat. It’s a grotty tiny terraced shit heap with mold up the walls. The loans don’t cover living expenses, now they’re not covering rent.

We have 2 other children. What do they expect families to do?

Not stupid thanks. It’s a cheap Northern city. Not Manchester.

You do realise there is a rental crisis everywhere hence thinking actually keeping student in line with the cost of living might be prudent. God only knows how students in expensive areas are managing. Oh look they’re not.

https://amp.theguardian.com/education/2023/sep/27/uk-university-students-facing-unprecedented-rent-rises

I don't want to be a hater (particularly as I scrapped into going to university when it was "free"), but does everyone really need to go to university?

I now live in a country (Switzerland) where the number of people going to university is much lower than the UK (you have to go to the equivalent of a grammar school in order to take the exams to go to university).

Most young people are doing apprenticeships where you actually get paid a small amount and can learn skills and get qualifications in your field.

Despite the lack of graduates I have not thought people in Switzerland are any less intelligent. The average Swiss 18 year old actually seems a lot better adjusted, probably because they don't have to worry about paying some insane rent for a damp terrace house in a not so great part of the UK.

Can I put it to you that for most young people University is not suitable? It seems more like a money making industry than an educational experience.

Oh, the flippant replies.... It's to do with not saving for uni fees when children are born... Isn't life so simple. Goodness me, there's a cost of living crisis going on. People with two good incomes can barely afford to live. It's bound to impact students, and not all students at unis come from homes where saving is possible.

Loans need to rise, AND employers need to stop making it compulsory to have degree level job for entry level positions.

@coffeeaddict77 That’s how it needs to work for the loan system to be sustainable though, is it?

I’m on the fence as I do think that it’s good for students to have a financial stake in their education. Back in the old days, other taxpayers and parents essentially paid for students to go to uni and IME, it did result in some people messing about and wasting their time. (I graduated in 1997). When you personally have to pay for something , you value it more, iyswim. But you also need access to the money to do this, I. E., adequate loans.

Plus, you need to repay the loans so that future generations can also go to uni. Right now, this isn’t working properly so perhaps the government does need to provide more funding -without completely going back to the free higher education system.

@HamBone Or there’s some kind of hybrid system where loans are increased for courses that lead to higher salaries and for courses that directly lead to jobs that are socially useful, but places or funding reduced for other courses - perhaps offer some kind of merit-based bursary for gifted students from poorer families.

Poorer families get the full loans.

Full loans don't cover rent rises though. That's the point of the thread.

I don't think the interest rates need to be as high as they have been. A bank would charge less for a mortgage for example. If interest rates were lower then more students would have officially been paid off.

Having come from a poor family (maximum grant and loan that covered all expenses. Uni was the first time since age 14 where I didn't work and could focus exclusively on my education) I've only recently realised that I'll have to save up for my own DCs uni expenses. My own parents contributed not so much as a pot or pan for the entire 4 years (BA and PGCE). As I'm a success story, I'll now have to start putting a little away each month. I consider this to be a net positive though.

Students do pay off their grants and loans - in higher income tax. I've paid my tuition fees back again and again.

A civilised country educates its young (and older) and act as if they are doing them a favour by giving them inadequate loans at stupid interest rates.

But I also thought it was no bad thing that my peers from richer backgrounds had to start getting Saturday/evening jobs. It helped teach them the value of money

I thought that was the point too. It is difficult for those on full loans even if they are in a city you wouldn't expect to be expensive e.g. Birmingham.

Some people in the middle band saved for university costs though. Did you not realise this would be an expense? I took it into account the fact that I needed to save when deciding on mortgage and other costs.

Hubblebubble

I think you’ll find kids from families of above £27k (the cut off for full loans)understand very well the value of money. It’s hardly a fortune and for some in more expensive areas in real terms money is worth a lot less. Some will have been in really struggling families of all ranges and circumstances financially and otherwise, had shitty Saturday jobs etc. Really silly thing to say.

coffeeaddict77

Ah bless. Well some of us haven’t had such a simple mapped out life and have had a few hurdles on the way.

I've had a lot of hurdles, thanks. I doubt you have had more.

Not going to get into a ridiculous struggles battle as you don’t know my or anybody else’s circumstances which makes your smug lecturing a tad pointless. However I’m pretty sure I could give you a run for your money.

@B00kmark6525 three times I have asked why he can't work during the long holidays they have in order to help you financially with the cost of his uni. Is there a reason?

He has worked.

I'm not going to go into a struggles battle either. You're the one making assumptions that everyone who has saved has had no hurdles in life and that's why they were able to save which is ridiculous. If your situation has been out of the ordinary e.g. if your income has only very recently risen and was previously very low so you couldn't save why ask "what families are supposed to do?".

@B00kmark6525 yes but he has to do it every academic year to help though? I get the not working during term time but it's all hands to the pump when things are tight financially. Don't you agree?

If you have been paying £300pm and the shortfall in rent what has DS spent his wages from the summer on?

We are in the same position OP. This term we are topping up rent by over £500. That's on top of helping with food and other living costs. My DS does have a job but it's zero hours and he doesn't consistently get given shifts. It's very difficult to find a job where he is, there are 2 universities in the city and employers are reluctant to take on students as they tend to go home for holidays. I'm just glad my DS will have graduated by the time DD goes. Having 2 at uni would cripple me.

coffeeaddict77

No what is ridiculous is you saying because you saved for uni everybody should have.

A lot can happen financially in the 20 year life of a young person and circumstances and finances vary hugely from family to family.

Re working through the holidays he didn’t save a fortune as struggled to get shifts and travel to get there uses up a fair bit. He has ND so can get anxious which has its limitations. He also had to study in the holidays to go over gaps in retention.We don’t always manage £300 a month, sometimes he’s had to have less and topped up from savings, he paid the shortfall in accommodation last year from savings, then there has been deposits to pay, his bus pass which was £100s, accommodation expenses…

All round he works hard at managing everything and we’re proud of him. It isn’t just about my son though but about a rental crisis and student finance not keeping up with the cost of living. Many, many students will be worse off than he is. Some have parents that refuse to help at all, some will have gone through clearance, had little say in location and have eye watering rental bills….In some cities there is no choice.

bobisbored

Yes he struggled to get a non zero hours job and got given shit shift patterns. Sometimes very few hours.