University Funding

[Cambridgegirl90]

I am interested if anybody can afford to make up the difference in the maintenance loan for their child but is choosing not to.

DSD is hopefully going to university this year. Due to my earnings she will only qualify for the minimum maintenance loan and the theory is that myself and he father will fund the difference.

We are in the fortunate position where we can afford to and we are planning to give the exact difference between full loan and what she will qualify for.

The reason I ask about whether some parents are choosing not to in particular is because a part of me questions whether it would be in her best interests to not give the full amount but encourage her to work alongside study (plus she has savings and potential contributions from BM - tbc) in that it would encourage her to understand the the value of money better.

I am also interested to understand how parents plan to pay this money during the first year - 9 instalments or 12, so in the latter instance paying whilst living back at home? Also, is there an expectation that this will cover almost everything e.g clothes, phone etc or are you still planning to pay additional for your child to go out, buy clothes etc whilst living at home during holidays and summer ?

DD may be in catered halls. £8k ish. Min loan will cover half of it.
I am intending to pay the other half + an additional £500 per month (and still pay during the hols - I have already started so she will have a buffer on day 1).
Plus pay any kitchen charge, insurance/deposit, travel to & from Uni, clothes in Sept. I will also be buying anything else she needs (laundry basket, cups, etc etc).

If she goes to her other Uni then meals are 'pay as you go' so I am intending to allow an extra £10 per day which I will pay during term time only.

Some parents are contributing far more and some far less.

No intention of making her work....not sure why it would be beneficial? If the course is full-on it will be detrimental and there's no guarantee of work anyway. Topping up to at least the value of the full loan is the expected minimum contribution

'Understand the value of money' - that old chestnut. Otherwise known as mean bitter parents utterly unsupportive of their offspring/step offspring. Do you think students somehow live in a parallel universe where they go to different supermarkets for their pasta, and travel on different buses, all charging special rates? Don't be that person and don't dress it up as for their benefit.

In answer to your second question the loan plus an amount from us paid for accommodation, and we gave a monthly (like a working persons salary) allowance, over 10 months, for food, travel, Spotify etc - thereby allowing them to actually learn the value of money.

I can understand why my post might come across as bitter (it's hard to sometimes articulate in a post) - but my point is more how best to strike the right balance . I am conscious DSD already has a large amount of savings and (maybe) enough to support her first year at least. This is increasingly all the time as she is furloughed from her current role (and not able to go out and spend it!) and i am also giving her £75 a week to help out with a few jobs around the house. My question is Would giving her another few thousand pound to spend mean that she effectively spends twice as much or would we be better putting the money aside for her for when she graduates to have as a lump sum? I can assure you she will definitely get the money, it's just about not having access to too much too soon. I am really conscious that having a tight(ish) budget at university really helped me recognise how to plan and means I am now financially savvy. I also think there are benefits to working whilst at university and, as an employer myself , I really recognise and value students that have also worked when recruiting graduates into roles - it can really give them the edge.

Most students think, before starting uni, that the £9000 tuition fees are the biggest headache, but it’s actually the living costs. You should definitely make up the difference between the loan given and the maximum. Beyond that, you should both sit down and work out a realistic budget that includes the essentials - food, accommodation, study materials, travel, phone, a small amount of socialising etc. and if there is a big difference between what she will have and what she needs, consider helping her out (if you are able to)

Then if she wants to spend more on socialising, clothes etc then having a job will help. Plenty of students have jobs just in the summer to earn the extra cash they need. Having a job during term time is tough. I teach at uni and I see no end of students who are not present for their course (and struggling) because they need to work to support themselves.

As for how to pay - I think in 9 instalments is best as she’ll have the money when needed (assuming you will support her when she is back home for holidays).

Our DC only qualify for the minimum loan, we chose to pay for the accommodation costs (so dc could choose mid range rather than cheapest) and they lived on their loan for food, books, entertainment etc.

However the piece that really stuck out for me in your post is that you pay very generously for household tasks. TBH , and it’s off point, but if you choose to pay your DC £75 per week for household tasks, when they’re not working but are receiving furlough pay, then I think your ambition to teach the value of money needs to start now, not in October,
As an adult taking responsibility for a share of household tasks shouldn’t come with the expectation of extra cash.

Yes I know some fabulously wealthy parents who have taken a sink or swim approach with their offspring the minute A levels are over. In my humble opinion it’s not a good look and can lead to resentments. I personally can’t understand why you would want to watch your child struggle financially if it’s not a struggle for parents to support them. Even topping up to the full entitlement may not be enough to pay for Halls plus day to day expenses. Time available for work may be limited depending on the course, and CV19 means the kinds of jobs typically taken by students (hospitality, call centres, retail) are just not going to be there.

I think it's unkind not to top them up. I worried about money constantly as a student. The loan doesn't even cover rent, it's ridiculous.

DH and I give each DD £200 each, £400 a month in total, 12 months a year. In addition DH pays DD1's car insurance (he uses it) and I pay for DD2's phone.

Both work - DD2 more as DD1's course is much heavier. DD2 is currently furloughed and receiving some pay through that.

DD2's flatmates all have the max loan and she has less disposable income in comparison - but less to pay back eventually.

MN is showing its wealth base again! Most students in my experience find that there is a discrepancy between what the government says their parent/s can afford to contribute towards another adult's living costs and what they actually can afford! This usually means they have to go without or find a means of raising the extra. But that's part of growing into adulthood, deciding on priorities and juggling commitments.

Our DS gets minimum loan so we pay his accommodation (approx £6k per year) to allow him to use the loan to live on. I prefer he doesn’t work term time as I want him to concentrate on his course rather than worry about earning extra cash as he can work during the summer to boost his bank account. About to go into 3rd year and worked fine thus far. We still pay for his phone and I give him a huge shop at the start of each term. Also bought everything he needed for his room in Halls then subsequently in his shared house. He is lucky, he knows he is lucky and appreciates the support. We’re glad we’re in a position to give this support and appreciate many can’t. If you can give the support though I don’t know why you wouldn’t.