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Original poster

Eligible for full maintenance loan - parent contribution?

13 replies

MovingtoEssex · 07/08/2021 18:52

I'm in the early stages of getting my head around uni money needs for DD.

She's looking at Sheffield/Nottingham/Manchester where it seems that living costs would be about 10K, with accommodation being half of that.

STEM degree with good earning potential (so I would expect her to end up repaying all loans).

Due to my income she will be eligible for the full maintenance loan which pretty much matches suggested costs.
Should I be contributing too to allow a lower loan amount? Or put this money in savings for her to use later? Or something else?

There are younger siblings too to make sure I can do the same for.

If anyone could share what they decided it would be appreciated!

P.s. also posted in Higher Education

OP posts:

frugalkitty · 07/08/2021 20:17

Our eldest DS will be off to uni this year, we have two more who are also likely to go to uni in turn. We've taken the view that they will have to take as much maintenance loan as they can (should be around £7k for DS this year) which will cover accommodation, then we anticipate giving him 2-300 a month to live on and hopefully he'll be able to transfer his supermarket job to give him more money again for anything else he wants beyond the level of living we can give him.

We just can't justify giving him anymore money than that. We have a mortgage to pay still, low pensions which need building up and two other kids to support still. He'll either earn enough to pay it back later or he won't.

The unis have halls costs on their websites so you can look to see what accommodation will cost nearer the time. If you can give some money then do, but only if it doesn't impact you and the other siblings negatively. Bear in mind that any benefits/top ups you get may reduce once the eldest goes to uni as well. It's not unusual for students to have jobs to help support themselves so this is also an option.

TreeDice · 07/08/2021 20:22

Just a little reminder that you dont need to skin yourself to pay for Uni for your DC. Getting a job is really good for their maturity, and learning about the world.

I graduated 5 years ago with 0 parental contribution (I'm one of 4) and a first class degree. I worked 3 part time jobs and made ends meet. And the large majority of those on my course did the same.

There seems to be a movement in the last few years to transition to 'parents absolutely have to pay or else the DC will fail Uni/their life etc etc' which just isn't true in my or any of my friends' experiences and just heaps a lot of pressure on parents.

Good luck to you and your DD!

Kite22 · 07/08/2021 20:54

No, don't try to reduce the amount she borrows.
She will pay back a % of her earnings, once earning over the threshold, so her owing £6K less, won't reduce her repayments, but means she won't have £6K to start her off (towards deposits or for first car / insurance or whatever) that she could have.

Look at Martin Lewis guide for more info

Leah2005 · 07/08/2021 21:00

My ds took the maximum loan and we gave him £160 a month (his dad and I are divorced and paid £80 each). He has been very sensible and has saved a lot. Martin Lewis says to take the max loan whether you need it or not.

Babyroobs · 07/08/2021 21:04

We paid for Ds's accommodation ( £350 a month ) so that he didn't need to take the maximum maintenance loan. He has just graduated and in a low paid job.

Original poster

MovingtoEssex · 07/08/2021 21:36

Thanks everyone, that is much appreciated.
My understanding and gut feel was to take the maximum loan.

@TreeDice Just a little reminder that you dont need to skin yourself to pay for Uni for your DC. Getting a job is really good for their maturity, and learning about the world.
Thank you! That is a good reminder.

Off to check Martin Lewis!

OP posts:

Kite22 · 08/08/2021 00:11

If they take the loan to pay their fees, they will owe something over £28,000
If they take the full loan they will owe about £57,000.

If they earn under the threshold (approx £28,000 without looking it up) then they pay back 9% of the total they earn above that amount. So if they earn £29,000, the amount over threshold is £1K, so the 'tax' they pay back is £90.

the figures might be slightly out, but not enough to make a difference to the point being made

It will be £90 whether they owe £28,000 , £57,000, or any amount in between.
So for most normal people, if you are eligible to have the full loan you might as well take it. There is no advantage to borrowing £350 less each month (as mentioned in the example above) as the repayment is worked out on your income and not on the amount you owe.

user1487194234 · 08/08/2021 04:39

We give ours £1100 a month to cover rent and living expenses

Sparklfairy · 08/08/2021 04:48

When my brother went to uni he took the full loan and my DM didn't top up with anything as she just didn't have it. He had got a job in a supermarket in his gap year which he then moved over to seasonal, so when he would come home for the holidays he would pick up shifts for extra money.

He did consider a transfer to a branch near his uni but thought it would take too much time away from studying. Hindsight taught him that a set structure and commitments outside of studying probably would have made him more disciplined with his uni work

Agree with PPs, don't overstretch yourself financially. Lots of parents send a supermarket delivery now and then which can be really helpful.

Original poster

MovingtoEssex · 08/08/2021 10:37

Thanks again for the replies.

@Kite22 that makes total sense.
The only 'advantage' to a smaller loan, would be a shorter repayment period. However from the table on the martin lewis page, only exceptionally high earners will pay back everything anyway and so most earners would never benefit from a slightly shorter time period.
If she is lucky enough to earn those amounts she'll be able to afford it anyway.

This has definitely put my mind at rest a bit - reduced CB and TC will affect the family budget when she goes to uni, but I was concerned about doing the right thing.
It certainly looks much more positive than I anticipated.

OP posts:

Babyroobs · 08/08/2021 11:32

@MovingtoEssex

Thanks again for the replies.

@Kite22 that makes total sense.
The only 'advantage' to a smaller loan, would be a shorter repayment period. However from the table on the martin lewis page, only exceptionally high earners will pay back everything anyway and so most earners would never benefit from a slightly shorter time period.
If she is lucky enough to earn those amounts she'll be able to afford it anyway.

I think it's around 25k they start paying back something back but yes some people never pay anything back. I have a friend who has never paid a penny back.

Ariela · 08/08/2021 11:50

I'd encourage taking a job between 6th form and Uni, ideally one that can be picked up again in the holidays. DD1 worked all through riding horses for other people, and my friend's son same age (went to Cambridge) did tutoring both of which pay double the normal min wage rate.

RedHelenB · 09/08/2021 22:25

I'm surprised you've got the spare money to offer this if she's getting maximum loan. I didn't pay any extra for my kids at uni but obviously fed them and treated them in the holidays. Both got part time jobs at uni, but zero contract hours so they could fit it round uni life.

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