Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Higher education

Talk to other parents whose children are preparing for university on our Higher Education forum.

Original poster

Financial support - living at home

9 replies

Callfour · 21/02/2023 21:03

Hello, I'm just starting to think ahead to saving for DC to go to uni, and went on the MSE calculator. I'm really confused about something though - I'm probably being stupid because it's been a long day!

I put the figures in, and the calculator says that I will need to save very similar amounts regardless of whether they live at home or away. I then looked at maximum loan amounts on the gov website, and it says there's only about £1500 a year difference in maximum loan for living at home and living away.

But why would I need to top up virtually the same amount if they didn't need to pay for accomodation as well? I was expecting more of a difference, if that makes sense. I've attached the screenshots to show what I mean. Thank you for any help - again, sorry if I'm being stupid, but I'm quite new to all this!

Financial support - living at home
Financial support - living at home
OP posts:
LynetteScavo · 21/02/2023 22:08

This is why some students opt to live at home - they don't need to get a part time job and can live off their loan.

Student finance isn't fair IMO. I assume that's the maximum loan? Why should students with lower earning parents end up with larger loans than those with higher earning parents?

SandyIrvin · 21/02/2023 22:13

Thinking that the actual cost of living at home varies so much that calculators not so useful. Some students will need to pay towards accommodation and other bills at home on top of heavty commuting costs. Whereas some like my boys had £50 per month travel costs and we were happy to provide accommodation and food etc. Perhaps you could estimate what they might need and subtract off the loan to estimate better.

In our area there are lots of unis within commuting distance but places at the higher ranking ones are not guaranteed even with great grades so staying at home not always possible (or best option)

titchy · 21/02/2023 22:19

The maximum loan for those staying at home is that high because when kids go to uni, parents lose CB and other child-related benefits, so they are expected to use some of their loan to pay 'board' which covers their household loss of income.

SandyIrvin · 21/02/2023 22:19

My two kept their 6th form jobs. Friends who stayed at home and took the full loans (when they didn't need to) are regretting it now when they see their loan repayments.

Original poster
Callfour · 21/02/2023 22:23

Thank you both - I see what you mean. I just can't understand why the calculator seems to think I'll need to give them as much to live on, when they will have nearly the same loan and no accomodation fees. Perhaps it assumes they will be contributing to accommodation at home (although of course, you wouldn't be giving them that money for them to them pay it straight back to you)!

I thought the maximum loan for those living at home was disproportionately high (only £1500 less than those living away) when accomodation can be so expensive. It must be to do with commute and possibly paying rent at home.

We live within commuting distance of several major cities so there are several universities - I would like the dc to still live at home, but I expect they will have their own ideas!

OP posts:
Original poster
Callfour · 21/02/2023 22:26

I think it's perhaps just a flaw in the MSE calculator, because it is saying what you will need to save to top them up in order for them to have the maximum amount. But if you are doing the topping up, you wouldn't be including money for them to pay board to you, as that would make no sense.

OP posts:
redskydelight · 22/02/2023 08:30

Callfour · 21/02/2023 22:26

I think it's perhaps just a flaw in the MSE calculator, because it is saying what you will need to save to top them up in order for them to have the maximum amount. But if you are doing the topping up, you wouldn't be including money for them to pay board to you, as that would make no sense.

Well yes, in practice parents of students not entitled to the maximum loan will let their children live in the family home for free and not give them any money. It's an option that's going to get more and more common in families where the family income is too high for the student to get a maximum loan but not high enough for them to actually provide the required top up to their DC.

SandyIrvin · 22/02/2023 10:45

Maybe to emphasise the amount expected by parents. Useful for my DS2s friend with divorced parents. Mum had new partner whose earning meant minimum loan. Mum/partner not able/willing to pay. She used the top-up amount to persuade her dad to pay.

TizerorFizz · 22/02/2023 11:41

The really disadvantaged are those who live nowhere near a decent university they could travel to. They have to leave home and get a loan. Commuting anywhere with no bus service is clearly impossible! We could have had DDs go to university in London but that would be it and a very long commute. If you can easily get to Sheffield or Leeds or Manchester or Liverpool - great. Many of us don’t have any choice but for Dc to leave home.

New posts on this thread. Refresh page