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Original poster

Savings at University

42 replies

Orangesandlemons77 · 19/04/2022 11:54

DC possibly staying at home for University. Live in a University city, on bus route to two Universities.

Thinking about savings they could make while at University. They already have around 15K each in Child Trust Fund savings for when they turn 18.

DH saw a financial advisor the other week and he mentioned about an ISA or LISA (lifetime ISA) being a good place to keep the CTF money for the future.

On a low income so they'd be able to borrow around 9K each each year for the 3 years of their degree. If they worked a part time job and used that money for their bus pass and possible contribute to food costs they could save (3X 9K) =27K each?

Just thinking it through does this sound plausible or is there something I'm missing? As it could add up to quite a bit, especially with the top ups on the LISA if used to fund a house deposit.

OP posts:
Babyroobs · 19/04/2022 12:16

They surely aren't going to get 9k in student loans if they have no accommodation costs to pay are they ? Not sure how it works but are you saying your child wants to save 27k in student loans??
Are they planning to have a life, have hobbies, go drinking, go to gigs, festivals ?

WhackingPhoenix · 19/04/2022 12:20

Do they want to stay at home? I can’t say I’d be encouraging them to stay just to save a bit of money. Uni is honestly one of the best life experiences they could have, at least try and encourage them to go and do it properly Smile

user1497207191 · 19/04/2022 12:23

The interest on the £27k student loan will massively outweigh the pitiful interest they earn on the ISA.

Babyroobs · 19/04/2022 12:24

@user1497207191

The interest on the £27k student loan will massively outweigh the pitiful interest they earn on the ISA.
Agree - didn't I read somewhere they are going up to 12% ?
Original poster
Orangesandlemons77 · 19/04/2022 12:24

Sorry, it is £8171 a year for year 2023 living at home. Still over 24K over 3 years though...

OP posts:
Original poster
Orangesandlemons77 · 19/04/2022 12:27

If you look at the Lifetime ISA though, the gov adds a 25% bonus etc..

www.gov.uk/lifetime-isa

OP posts:
VanCleefArpels · 19/04/2022 12:28

Don’t take loans they don’t need - the interest rates are criminal and can be varied at any time.

Original poster
Orangesandlemons77 · 19/04/2022 12:32

Good point.

So if your DC had a CTF of 15K, would you use that money towards tuition fees? Or not?

OP posts:
Babyroobs · 19/04/2022 12:33

@Orangesandlemons77

Good point.

So if your DC had a CTF of 15K, would you use that money towards tuition fees? Or not?

No because you don't start paying student loans back until they are earning above a certain amount. It would be tragic to use CTF savings to pay tuition fees then they don't even get a job where they earn enough to pay it back.
Original poster
Orangesandlemons77 · 19/04/2022 12:39

Yes I see, thanks. Flowers

OP posts:
Babyroobs · 19/04/2022 12:41

@Orangesandlemons77

Yes I see, thanks. Flowers
There's nothing to stop her using the CTF to pay for tuition fees if she wants to. But I think personally I would want to keep that cash for setting up home/ travelling or whatever. I guess it's up to her really. I guess she's very lucky having that amount saved in the first place.
Original poster
Orangesandlemons77 · 19/04/2022 12:45

I totally agree.

Yes, we're a low income family, but from saving £30 a month since when they were born it's predicted to be 15K when they turn 18. (next year)

OP posts:
Original poster
Orangesandlemons77 · 19/04/2022 12:46

Could maybe have the CTF money as a backup in case they need money if they choose not to take the full maintenence loan perhaps. They will probably get a part time job also. The bus pass is about £500 a year.

OP posts:
RedskyThisNight · 19/04/2022 12:47

I don't understand how you can earn little enough for your DC to get a full student loan (for students living at home) but can afford for them not to contribute to household costs (other than possible food contribution).

Original poster
Orangesandlemons77 · 19/04/2022 12:54

@RedskyThisNight

I don't understand how you can earn little enough for your DC to get a full student loan (for students living at home) but can afford for them not to contribute to household costs (other than possible food contribution).
I guess I'm just assuming that we manage that now so would be able to in the future.

We've paid off the mortgage which probably helps, on a total family income of around 25K, but the student loans seems to rate up to 25K as low income for the higher band of loan...

But of course child benefit will stop which is another thing to think about. I guess I'm thinking they could get a part time job which could pay some towards food etc as well.

OP posts:
Calandor · 19/04/2022 21:44

Savings at uni? I left with - minus £2000 overdraft having worked 16 hours a week. And a £55k student debt of course.

I don't think they really need to save at uni tbh. Any money they make is to spend having fun, on books and on trips and being a student!

Then they'll have the £15 as a house deposit when they leave.

Original poster
Orangesandlemons77 · 20/04/2022 14:31

On this topic, how much would be appropriate to ask DC for towards living costs would you think? If anything?

Situation is we have an income of 25K per year plus around 6K cont based ESA (which is taken into account as income with tax credits so think may with student loans too?- not sure)

So this means DC would get just under 8K I think for their maintanence grant per year plus they have the CTF of 15K. They may get a part time job also (had one last summer)

We'll lose as family income half our tax credits and half child benefit (I think) as our eldest turns 18. I hadn't thought of that until a PP mentioned upthread about how could we manage etc. But we have paid the mortgage off last year so no mortgage costs although have the general cost of living increases e.g. fuel etc.

Also does anyone know, would any contribution from DC be counted as income for tax credits please? If so that may negate it anyway. Thanks

OP posts:
RedskyThisNight · 20/04/2022 14:55

On this topic, how much would be appropriate to ask DC for towards living costs would you think? If anything?

I think there are several ways to approach this


  • he pays the amount you will be losing due to him turning 18 (possibly with a cost of living increase added on)

  • you look at what the market rate for a lodger with all bill is in your area and charge that or thereabouts (not adding extra for food, so it is actually cheaper than lodging)

  • if the £8000 is meant to cover maintenance that is £800 a month for 10 months. So perhaps at least half of that would be sensible?

  • Although ... unless his course precludes him getting a part time job, I would consider this to be a given so he actually has more income than the £800. I wouldn't want to be setting the board payment so low that he has money to burn. If you don't need the board money (or all of it) then you could save it for him yourself.

If it helps we've told our same age DS (not going to university) that we expect him to be paying £500 a month board from September. A room in a house with all bills (but no food) around here is about £600.

Original poster
Orangesandlemons77 · 20/04/2022 14:59

OK thanks Redsky.

OP posts:
Comefromaway · 20/04/2022 15:00

Why was it your dh who saw the financial advisor not your dc? It's their money.

Living at home out of London they will be able to borrow a maximum of £8,000. I'd be looking for between £50-80 per week board if either of mine had chosen to stay at home.

Original poster
Orangesandlemons77 · 20/04/2022 15:01

DH was seeing the financial advisor about pensions and just happened to ask about the CTF as an aside. Yes it's their money I know.

OP posts:
Original poster
Orangesandlemons77 · 20/04/2022 15:07

OK so apparently from the Turn2us site, student loan income is not taken into account with tax credits, but is with Universal Credit.

Not sure why there is a difference seeing as they are both means tested. Better check this.

OP posts:
Babyroobs · 20/04/2022 15:11

Orangesandlemons77 · 20/04/2022 15:07

OK so apparently from the Turn2us site, student loan income is not taken into account with tax credits, but is with Universal Credit.

Not sure why there is a difference seeing as they are both means tested. Better check this.

This refers to mature students who claim benefits and then take student loans. If you claim benefits yourself, your dd's student loan will not affect your benefits.

Original poster
Orangesandlemons77 · 20/04/2022 15:13

OK thanks Babyroobs, good to know.

OP posts:
Babyroobs · 20/04/2022 15:13

RedskyThisNight · 20/04/2022 14:55

On this topic, how much would be appropriate to ask DC for towards living costs would you think? If anything?

I think there are several ways to approach this


  • he pays the amount you will be losing due to him turning 18 (possibly with a cost of living increase added on)

  • you look at what the market rate for a lodger with all bill is in your area and charge that or thereabouts (not adding extra for food, so it is actually cheaper than lodging)

  • if the £8000 is meant to cover maintenance that is £800 a month for 10 months. So perhaps at least half of that would be sensible?

  • Although ... unless his course precludes him getting a part time job, I would consider this to be a given so he actually has more income than the £800. I wouldn't want to be setting the board payment so low that he has money to burn. If you don't need the board money (or all of it) then you could save it for him yourself.

If it helps we've told our same age DS (not going to university) that we expect him to be paying £500 a month board from September. A room in a house with all bills (but no food) around here is about £600.

£500 ?? For a room in his own home ! Are you particularly short of money or something??

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