Kid at uni? So how much is that costing?

[Lordfrontpaw]

I was just pondering this. DS was talking about courses this morning (he is about to start a-levels) and it’s a very different world from when me and his dad went (no fees, grants...).

What realistically are parents paying these days?

You are expected to pay between £0 to~£6k per child depending on your income.

Is that per year or for the full time?

Oh, and I went to Uni in the days of grants and because my Dad earnt too much I didn't get a grant at all so it's actually better now because parents aren't expected to pay all living costs.

Plus fees - I assume they all are around the £9k mark?

I didn’t get a grant and dad paid for my post grad (work paid for my next degree and postgrad). I lived at home too. Very different days now.

Parents dont pay the fees. They are a debt incurred by the student who then pays it off in their taxes if and when they start earning over a threshold.

My children have been through university. They only got the minimum 'grant' (cant think what it is called nowadays) which in their first year in student accommodation, does.not cover rent, but in later years, if they get a cheap enough house share, it can do. On top of that they need money for food & entertainment, etc. We gave ours £50 a week which does not go far but is adequate.

Or, of course, you can get your child to get a job and pay their own living expenses.

Thank you - I assumed the fees were paid unless you took a loan!

No, the fees are more like a deferred tax incurred by the student.

Yes, the student takes out a loan on the fees and on living costs (means tested). It then is paid back like a tax, so a % over a certain amount of earnings. Expectation is that parents / student jobs fund the difference between actual living costs and the means-rested loan.

Poor buggers...

My ds is just finishing year two at Warwick. We pay the following:
Course fee
Rent for off campus accommodation 4700 per year
About 300 per month during term time
He had an internship at the end of year one and has another one starting end of June so we don’t give him any money in the summer. He also tutors chemistry and maths in Xmas and Easter break so no need to give him any money then either. We don’t ask him to contribute to any household expenses when he is at home in the holidays. His internship was overseas and he covered all his expenses from his salary.
Re costs, some halls of residence can be quite expensive. Warwick was pretty good with rooms stating at 80 per week, but have seen some very expensive halls mentioned on the uni threads.

As a student: I have a 9k loan for each year of my degree for tuition fees, which will be paid off like a tax each month once I earn over a certain threshold (a sliding scale, so I'd pay more on 40k than on 25k). I probably won't end up paying it all before it gets written off. I also get a little over the minimum maintenance loan, which pays for my accommodation with £200 to spare each term (short terms and relatively cheap accommodation though). My parents pay half of any big costs e.g. new shoes, coat, and set me up with probably around £100 worth of food and toiletries at the start of each term (mixture of a week's fresh stuff and a well stocked store cupboard), for which I am very grateful. They also very kindly feed and house me for free during the holidays, and drive me there so I don't have any transport costs. The £200 leftover from the loan once I've paid accommodation is my budget for the term (8 weeks), and any extra money plus my half of big purchases (I usually spend around £250 a term) comes from my savings from the summer jobs I've had since I finished my gcses. I don't work in term time. Having said that, my budget is easily workable bc I cook almost all my own food, don't go out and don't drink much - when I do, it's a case of splitting a bottle with several friends, or paying someone back with a meal etc. I don't think my parents feel they pay an excessive amount towards my upkeep.

My DS had the maximum loan and a bursary. It was plenty enough to live on so long as you don’t require en-suite rooms etc. Parents are expected to top up the loans received to the maximum loan amount, really. That’s why they are means tested, the government assess that you earn enough to do that. It’s not always possible and some parents don’t believe they should. If you get the minimum loans which pay all fees and around £4K maintenance, the very maximum you are expected to contribute is around £5K (if not in London.) Bursaries vary a lot from uni to uni, around £1K is average for parental earnings below £18K. So maybe £6K max would be reasonable, imo, if you get only the minimum loan.

Any US students out there? (Big sigh)

When you say means tested, do they take into account the parents outgoings etc?
We are looking to buy our first house in the next year-18months and eldest would be going to uni in 2022/2023 if he takes a gap year. DH probably earns enough to make DS qualify for minimum loan but I’m concerned that if we have high mortgage payments we won’t be able to help DS as much

www.moneysavingexpert.com/funding-uni/

www.ucas.com/undergraduate/student-life/getting-student-support/undergraduate-student-finance-and-support

These are both good sources to explain how it works. The main thing to worry about is living costs. If you only qualify for the minimum maintenance loan (and no, outgoings not taken into account it’s a blunt assessment of income only) this will not go anywhere near paying for accommodation not to mention other expenses. Parents are expected to top up or students to work (difficult for some labour intensive courses, very difficult in the context of pandemic related recession to come)

www.gov.uk/student-finance-calculator

Use this to calculate how much your DC would be eligible to receive as a maintenance loan for the 2020/21 academic year (they will automatically be eligible for the tuition fee loan). The amount does go up a bit each year, but not by a huge amount.

Two DC back from uni for ten weeks has reminded me how much they eat. Don't forget when they are away you are saving on food and energy costs.

Mine have not been at the most expensively located unis, and haven't needed us to top up their loan to the full amount. That said, they've both worked in the summers for extras (eg concert tickets). Not as easy this summer.

@Fiddlersgreen, sorry, no they don’t take outgoings into account. Which is why some parents don’t top up everything and the student probably has to get a job. It’s that tricky middle ground, not poor enough to get full loan, not rich enough to afford it easily. It’s a darn sight less than most private school fees for the richer parents.

@Lordfrontpaw the only DC I know going to the US from the UK has got a full scholarship from Princeton.

DS gets minimum maintenance loan ,which he lives on (food, clothes, travel etc) and a loan for course fees - both will be paid back afte he graduates as a graduate tax when he reaches the salary threshold. We pay for his accommodation in halls which are about 6K per year.
DD will hopefully be going to uni in the autumn and her first choice is a London uni. We will do the same for her as we have for our son but her accommodation will be much more expensive - at the moment looking like 8/9K.
It’s an expensive business!

Having kids at uni if you're on a non-means tested loan is like having another mortgage. We've paid for accommodation, which comes out at around £5k to £6k and the kids keep the maintenance loan to live off. With three children close in age, we'll have three years of there being two children away at uni in a given academic year. I've worked in a HE setting for about 15 years - since the youngest started at school, so I've been preparing for this. Just three more years and I can afford to treat myself to a nice holiday with the money I earn!

I guess we will never retire at this rate...

Currently paying rent on two student houses
with both those students living here

@Fiddlersgreen no it doesn't take into account a big mortgage.

When you're making your calculations, assume you will be giving each of your student children £500 a month.