Student finance - can someone help me get my head around this?

[glittergold]

We saved 20k over the years to help support DC through uni. Obviously, tuition fees and living costs will exceed this.

I think the most sensible plan is for DC to get loans to cover tuition. But when it comes to living costs, 20k won't be enough to cover three years - particularly if they end up at one of the more expensive unis.

Our income threshold means that DC will only be entitled to the minimum loan to help cover costs (just under 5k a year).

My question is, does it make the most sense to take the minimum loan each year, beginning from the first year, and supplement that with money from the 20k? Or to 'use up' the 20k first, thus avoiding interest, and only take loans out when we reach the point that we need to?

I agree it’s a very blunt assessment tool @Hoppinggreen The Welsh approach is probably a lot fairer for the individual student and their household, but applying that in England would be £££££££.

Tbh I don’t know what the answer is, but somewhat selfishly am glad that my three all are done and dusted as far as Uni goes now.

@boys3 and @Hoppinggreen - thanks. You are exactly right - it seems such a blunt tool. I have three kids and that’s a LOT of support we are expected to offer on our so called ‘high income’! I didn’t realise Wales was so different.

We will find a way to manage (I hope) but I wonder what families who simply cannot manage do?

Assuming one child (despite the "they") £20k over 3 years is not much more than what a "higher" income parent has to pay to make up about £4300 minimum maintenance/rent loan up to the maximum the poor get of nearer £9k. So probably best to take the full fees and maintenance loan and use the £20k to top up with about £6k a year.

(I was paying school fees of about £17k a year per child so basically just carried on with that so they didn't have a 9250 a year fee loan nor the maintenance loan. I am glad to be free of that now (for 5 children) and I appreciate most parents (even the supposedly top 10% of earners ie on over £70k a year who are now taxed the highest they have been for 70 y ears under the Tories and now Labour) are not able to afford to do so).

We have saved and dc takes tuition loan and min maintenance loan. It’s an easy process for minimum no need to supply earnings details. Our required top up is £5500 this year but we pay slightly more to pay her rent and she lives off loan (her rent is at reasonable end she chose cheapest accommodation not en-suite)
It’s a big shock for many that they are considered high earners and a shock how much the required top up is. If you look on WKIKAU on facebook there’s lots of posts where parents have only just caught on - one that stood out to me was someone assuming there was a a maintenance loan AND an accommodation loan, they couldn’t fathom the only loan being thousands less than the uni provided halls.

Take the loan! Encourage your DC to get a part time job as well. DC2 works every Sunday as a lifeguard and earns about £150 for each shift. They also work in the holidays.(incidentally there is a national shortage of lifeguards and it only takes a week to qualify).

Obviously dip into the £20k but I am just thinking that it would be ideal not to burn through it too quickly.