dc with savings - should they be expected to use those funds for living expenses at Uni

[Notonstrike]

If your dc having savings (say £10,000 or so) should they be expected to use some/all of it to contribute to their rent/living expenses during their Uni years ?

If so, and 1 child has more savings than their sibling(s) are they expected to use more ? (Accumulated extra savings due to having to take a gap year and reapply, grades in hand, but worked full time paying a modest rent whilst living at home).

As the parents, we do have savings but these are being rapidly depleted (for reasons other than funding dc at Uni) and will run out before all dc are through Uni.

Posting as a parent who came out of Uni with just an overdraft of less than £1,000 because I am old (no tuition fees to pay in my day) plus I worked in term time and also had a full on holiday job every summer in my home town too.

If you have separated then they only assess on one income, not both. You need a signed letter from a solicitor to say you have separated (only one signs, and it costs £20 or less) or decree nisi if you filed already.

Student loans won't be based on combined income if you are no longer together. It will be based on the income of the household where the dc is primarily resident. (Yours?)

Minimum maintenance loan plus £100 per week plus any income from part time work should be absolutely fine and broadly in line with what their peers will be getting.

Student finance advised me that they still require details of both parents earnings. but I'll double check.

It doesn't get away from the fact that stbx could contribute but won't so the dc will have to use their savings to top up or come out of Uni with more debt than would have been necessary because one parent believes it's not their responsibility to contribute.

Thanks @titchy That's comforting to hear.

Does that work even if we're having to share the same address at present ?

It's household income, so if you're living at the same address, I think it would probably count. Might be worth getting some advice on this, though.

I couldn't afford to totally support my kids. They got fees and maintenance loan which covered accommodation with a bit to spare . I sent £200 a month and they worked part time. Loans do only go on primary carers household income. So you might get more than you think. But I'd take into account them getting a job and budgeting. I'd try to avoid using savings as these can be used later for car /house.

Would it be £100 over 52 weeks? £5200 all together? On top of their minimum loan? If so ( and they were at uni outside London) it would be about right for the parental contribution anyway. So yes I think if they want anything on on top of that then it’s reasonable to say that they can get a job or use their savings

Our dc gets minimum loan which we top up to the maximum student loan amount (for outside London). So we give them £5182 spread over 3 terms but they know it has to last over the whole year (which they could survive on ok tbh)but they usually get a job in the holidays anyway
They work during the summer to get a buffer and they do have savings if they want to spend more or buy something big/ go on holiday

I think it might be worth you reading the Martin Lewis guide on student loans and parental contributions.. it explains it really well.

Dc avoided London unis to try to keep it cheaper ( their current rent and bills is just under 7k per 51 weeks ) and I think this might be key tbh as I have friends whose kids accommodation costs come in at more than maximum student loan

@Overeggingthepudding

Hi, no, my budget would be for £100/week term time only (so 30 weeks = £3,000 per year per dc). Accomodation contracts seem to vary in length but my sums show that I can't run even to the 42 or 44 weeks of much of the accomodation available, let alone 51 or 52 weeks, given that it's important to me to be fair and fund all my dc the same over the coming years.

This is why I think they'll have to use quite a bit of their own savings to bridge the gap.

I've already warned them to think carefully about the costs of living in London and even places like Bristol/Bath/Exeter where accomodation prices seem very high. Along with prospectus/course content etc, the dc will need to compare accomodation costs too. There's lovely modern fully serviced accomodation with loads of amenities out there but the prices are scary. I wish school were on board with this, it's not included in their choosing where to apply guidance, just left for us parents to be the bearer of bad news on that front.

If you are not a household then it doesn't matter if you live together or not. You would need to prove you are separated - have you filed for divorce? If so, use the decree nisi. If not, get a signed declaration. There are samples online of what to write

Are you actually separated but still living together, or are you married but unhappily?

Student finance doesn't care how happy you are, just if you are separated.

When they say they need both parents income if married, they mean married but not separated. There is a separate set of rules for separated parents.

Household income is that of one parent plus anyone they cohabit with, if you are separated or unmarried but cohabiting. But cohabit and share a house are two different things. Eg they are not interested in the income of a lodger in the house. Equally if you and your ex have separated then you are no longer a household.

@Notonstrike sorry that you are having a shit time at home, hope your cat is okay and your soon to be ex gets the shits.

Are any of your children going to uni this September?

Look, you can only afford what you can afford and an honest and upfront conversation about that would be helpful so the children know where they stand. Up to them if they want to get jobs or use their money and for which they can talk to their Dad about too. Personally I think it is shit that a parent would expect them to use their savings to pay for uni if they can afford to support their child. The savings are a great start toward a house deposit which will be bloody hard to save for with house prices the way they are.

I am sure that this has been argued before but can't the courts rule child maintenance for those attending university? It would have to be part of the financial side of the divorce agreement. It is usually a continuation of child maintenance.

If you are legally separated then get some confirmation from a solicitor so that your DC can apply for a loan based on your income alone.

Full loan in most places, excluding London is plenty for students to live on. Ds is technically on full loan as we do top him up to it and only for term time. However, out of this, he has enough money left over to socialise at Christmas and Easter, go camping with his mates in summer and even London gigs so it is all about how you manage your money. Ds does have a chunk of savings that are CTF and birthdays and Christmas from relatives but he stuck that in a LISA for a house deposit. But he is thrifty and a saver.

“Look, you can only afford what you can afford and an honest and upfront conversation about that would be helpful so the children know where they stand”
This ^

At least they’ll know how much they are short by. ( probably about £7k over the 3 years) and will have to use savings or defer and work for a year to get a few thousand behind them I guess