Student loans not rising to manage rents increasing

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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?

I already said that someone's income suddenly increasing from low (so they couldn't save) to high (so they their DC only received a minimum loan) could be a reason for not being able to save enough to fully top up the loan. However, most people aren't in that situation so if that's the case why assume everyone's in the same boat? Yes, mortgages interests have recently increased but they have been much lower so not a reason to have been unable to save over the last decade.

I am very sympathetic towards students struggling financially at the moment. Not so sympathetic towards the parents on a relatively high income who have not saved any money to top up their DC loan.

Really not bothered by your lack of sympathy.

Student loans simply need to keep up with the cost of living. The numbers of parents who have saved for uni is low and as more and more families struggle and the cost of living and rental crises bites further those numbers and those that can leave savings untouched will reduce even more.

Why has this turned into a dig on one family's income / outgoings / savings?

I don't agree that everyone can save for uni costs. Second year students are not in halls anymore so are at the mercy of landlord rents, etc. Young people on reasonable wages can't afford to rent privately anymore, so how are students supposed to - at a time when their parents are struggling with rising prices on everything. Think - gas, elec for a start.

Savings go nowhere. Takes ages just to save for deposits and first month's rent, for example. And there are other children in families who require school expenses. Life can't be shoehorned into 'why didn't you save?'

Perhaps cope by not spending £300 on food per month for one person?

It isn’t just for food, it’s for bills, course expenses everything. Some months we can’t manage £300.

And yes the focus on us is tiresome. It’s widely reported what an issue this is.

My parents had to top up my grant back in the 1990’s, I think many parents have always had to contribute unless they were very low income, haven’t they?

I wouldn’t describe myself as financially savvy but I suppose I had a sense that the fees/loans situation was only going to get worse so I started saving for DD when she was six months old and DH has for DS. We’re really glad of it now that DD (18) has started uni. She’s doing a four-year course and it won’t cover all of it, but it’s a good start.

I know it’s not possible for every family but I’d recommend it to anyone with young children. It’s much easier if you do it gradually.

The op has already said up thread the £300 isn't just on food.

He's an adult. If he wants to stay in full time education he has to support himself. Same as if have to do if I decided to go to University now. That's life.

But you are missing the point that even if student loans had gone up by inflation, your required parental contribution would have gone up too and would be more than it is now, and your child would still be struggling, NOT because of the amount of loan available, but because you are declining to top him up as per the required parental contribution.

I completely disagree with your assertion that the number of parents who have saved for uni is low. I know no-one who is on an income that will require a parental contribution who hasn't been thinking of this and tucking a little bit away since their children were born. Yes, it's a huge amount to find from day to day income, but it's not a big amount to save over nearly 2 decades.

The vast majority of students cope fine because the max loan amount is enough for all but the most expensive cities, and most students have the total loan amount to live off of because their parents have made provisions to top them up if they won't get the full loan. You keep talking about £27K - but you know you are being disingenuous there. At £27K family income, the top up would be minimal. If you need to make a significant top up, you have a high family income. Since you say you already give £300 a month, he's in the cheapest of the cheapest and he still has a deficit, I can only surmise that he gets minimum loan. So you have a high family income in excess of £62K. So you need to stop pleading poverty and that you couldn't possibly have saved any money for your child in the last two decades. Your child is struggling because of you, not because of the government.

This is the amount you are meant to contribute linked to earnings, and remember you've had 18+ years (mostly with ultra low mortgage rates) to prepare for this.

Household income Maintenance Loan Expected parental contribution
£25,000 or less £9,978 £0
£30,000 £9,265 £713
£35,000 £8,552 £1,426
£40,000 £7,839 £2,139
£45,000 £7,125 £2,853
£50,000 £6,412 £3,566
£55,000 £5,699 £4,279
£60,000 £4,986 £4,992
£62,343 or more £4,651 £5,327

Sorry but that's nonsense. There is work available for students through holidays and weekends and even agencies where shifts can be picked up. Over the 3 months summer a student can easily earn £4k to help subsidise their living through the year and indeed many take gap years to save more before they even start.

Which other services would you like to take the extra money away from? Schools, NHS?

Yes it's hard but students can help themselves. £300 a month for food is high. I knkw students who get by on £40 a week. Perhaps it's time to cut his allowance and get him to budget.

I agree OP. It is not a level playing field at all. It is all very well saying get a job. It isn't easy to find things that fit in. It is poorer students who end up having to work because their parents can't bail them out. This puts them at considerable disadvantage. Working a few hours would be OK, but university is all about self study and those who work won't have as much time to do that.

Sometimes with everything else going on you just need to help yourself.
And I say that as someone who went to uni as a single parent and put two kids through.
They had to work.
With autism.

We have more than one child, £5k a year per child (£15-20k is way more than we could save. We’ve had a very difficult 20 years and it is calculated on current income not your income over 20 years and income actually varies hugely in real terms in different parts of the country you live in. I know we’ve done the best we can.

You must move in different circles than me because we are surrounded by people struggling with the cost of living who haven’t got pots of money stashed away for uni. It is also widely reported how students are struggling with rent rises and lack of supply. I know several families who have told children they can’t go at all simply because they can’t afford it. The factors based on parental income in the first place is ridiculous as it totally screws some kids who are reliant on parents being supportive of uni

It’s student finance for living and needs to be in line with the current cost of living . It isn’t. To just dismiss it being an issue by saying nobody is struggling and the majority have savings to help is ridiculous.

stomachameleon

Well you must know then that autism and how it presents varies hugely. Some kids have more than one ND too.

Well yes of course.
But he did work you said? So maybe something better paid if it's causing you this much angst?
I am not getting at you but if our children want to go to uni then sacrifices have to be made and families have to pull together.
So they have to/ had to do extra. (I was diagnosed with cancer to so do get the strain)

We have pulled together. This isn’t just about us but many, many other families and a student finance system that isn’t keeping in line with the cost of living.

I think things have changed. I got minimum loan, and it covered my accommodation costs at least, in normally priced accommodation at a Russell group uni. This was early 2000s. I didn’t know anyone with a job at all, even the people on low contact hours courses. Some people did live at home though.

Very odd that on other threads people mention being in receipt of Universal Credit for housing costs, and that's fine. These are the same kind of rents - how on earth are students supposed to afford this on one loan and small gifts from bank of parent? Instead of agreeing that rent rises may force students to give up their course, we expect them to increase their working hours, blah, blah - i don't see the same vitriol directed at the working poor struggling. That's okay I suppose because they receive benefit. Student loans aren't a benefit - they need paying back. Very odd thoughts here.

We maybe do move in different circles. Everyone know is a graduate so always knew that parents would probably need to contribute. Maybe the people you know aren't? I do think it should be more clear to the general population that they will likely have to contribute if their DC go to university and not to assume they will be able to work. There aren't enough jobs for all students and some courses are too intensive anyway.

It's not the rich and privileged who save well in advance btw. They don't need to save for university as they can pay out of their income.

As you say students are finding it very difficult at the moment but the ones that are finding it the most difficult those whose parents are not topping the loan to the required amount.

Having said that, everyone I knew at uni (many years ago) also leant heavily on overdrafts. The banks were pretty amenable.

This is so true! I remember Barclays giving me a £1500 overdraft limit as a jobless student. I know people working full time in lowish paid jobs that can't get that limit nowadays.