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Secondary education

Connect with other parents whose children are starting secondary school on this forum.

Original poster

If you pay for private school fees will you pay uni fees?

127 replies

Allotment123 · 09/09/2023 20:58

As the title says, if you pay private school fees will you pay for uni fees, tuition and maintenance for your kids? On a combined income of about £90K and wondering if it was feasible? People say they'd rather save for a house deposit, but do they actually save it? Really hate the idea of my kids starting life in debt

OP posts:
whathappenedtosummer23 · 11/09/2023 13:19

Absolutely not. University is an investment in their own future. I top up the loan so that they have very generous allowances but myself and their dad felt extremely strongly that this is something they invest in for themselves. They have a house deposit waiting for them.

Blodwen9 · 11/09/2023 13:32

whathappenedtosummer23 · 11/09/2023 13:19

Absolutely not. University is an investment in their own future. I top up the loan so that they have very generous allowances but myself and their dad felt extremely strongly that this is something they invest in for themselves. They have a house deposit waiting for them.

but you're just choosing to split it a different way? House deposit or university funding, you're still massively supporting your kids through this next stage?

NM12345 · 11/09/2023 20:07

twistyizzy · 10/09/2023 19:47

@Allotment123 don't bank on it. If they apply VAT on private schools then they will have to do the same for universities as they are private institutions too.

Uni's are independent institutions , but most are funded by us. No major Uni is private in the UK, like private schools. In fact there are only 5 private Unis- Regents, Bucks and a few more like the University of Law, most parents (or school leavers) will have even heard of any them.

Heatherbell1978 · 12/09/2023 07:32

We won't. Hoping DS starts private school next year (P6/upper primary) with DD following for secondary. Private will be tight but doable for us. That said we're in Scotland so no tuition fees although I expect to contribute towards living costs but they won't be as much as school fees. I don't imagine we will be in a 'house deposit' position, we're certainly not saving for that specifically but if any inheritance comes our way then that's what that is earmarked for assuming we're comfortable pension wise.

KashBonn · 20/09/2023 12:16

Is it worth selling a retirement asset (property) to pay a private fee for London’s top independent schools… mainly to improve child’s oracy skills, overall confidence so mainly PSHE areas? He’s a bright lad so hopefully academics will get handled anyway but it’s more for the confidence building (unfortunately got bullied in primary school and the school didn’t do much to support personality development rather suppressed him by allowing loudmouths to get ahead and noticed, all in the name of building resilience!) that I’d go the extra mile!
But is that a sensible, good reason?

PinkRoses1245 · 20/09/2023 12:17

Anneta · 09/09/2023 21:37

We paid the tuition fees up front but then settled the student loan later when my son and his wife were applying for a mortgage. It allowed them to borrow enough money for the house that they wished to purchased. The mortgage lender takes the student debt into account when decide on the amount of money they are prepared to lend.

This isn't true.

PinkRoses1245 · 20/09/2023 12:18

I don't know why you'd pay for something when you can borrow it, pay back some and it gets written off anyway.

LondonLovie · 20/09/2023 12:21

Glonda · 09/09/2023 21:45

Yes, but I'm beginning to wish I'd done more research into student loan interest and repayments. We can afford it, but it may be that getting the loans and saving/investing our money would have been a better financial decision. I made a choice based on gut feeling ("little DS mustn't have any debt!") and that's not a good way to do money.

Next year I will research it and may reconsider.

There's also the psychological factor: students may feel (literally) more invested in their degree and may be more mindful about spending money that they'll probably have to pay back. Plus it cuts some of the apron strings from Mum and Dad and gives them more independence as an adult.

You could always pay off their debt later, if you want...

This is very good advice. I've literally never thought of it like that..

justasking111 · 20/09/2023 12:39

The government turned students loans over to private companies who can set their own interest rates. They have gone up and could do so again.

Personally I don't trust them. We'd paid school fees so thought in for a penny. Our three left without debt. We bought each a car as a graduation present then shut the bank.

They all got jobs straight out of university luckily.

We did give two of them help with deposits years later when they were engaged and buying a house. But that was a wedding present.

KnittedCardi · 20/09/2023 12:45

No. Despite DD taking out minimum maintenance loan, and tuition loan, we still have to sub some £10k a year to cover the extra rent and living expenses. Yes, it's less than school fees were, but frankly we are putting the rest in to our pensions.

And now she is going to do a masters, and that's a whole other huge sum we will have to sub, as the loan is even less, but the fees huge.

justasking111 · 20/09/2023 12:47

KnittedCardi · 20/09/2023 12:45

No. Despite DD taking out minimum maintenance loan, and tuition loan, we still have to sub some £10k a year to cover the extra rent and living expenses. Yes, it's less than school fees were, but frankly we are putting the rest in to our pensions.

And now she is going to do a masters, and that's a whole other huge sum we will have to sub, as the loan is even less, but the fees huge.

My son had a very savvy girlfriend. He was doing a masters. She found a full grant for him. They do exist at this level. Start looking is my advice.

user14699084658 · 20/09/2023 12:50

Yes, also intend helping with significant house deposit. We see it as an effective way of reducing our assets re future inheritance tax…they need money while they’re young!

SabrinaThwaite · 20/09/2023 13:22

PinkRoses1245 · 20/09/2023 12:17

This isn't true.

Show quote history

It is true.

Student debt repayments are taken into account for affordability and stress testing.

ForestDad · 20/09/2023 13:26

State secondary and saving for uni for our two so the other way around.

Depending on job / career earning prospects they can either take the loans and have for a deposit / business setup or use the money for debt free uni. Budget is a lot less than a year of private school.

Papyrophile · 20/09/2023 13:34

Mixed private and state education for school years, then ours took the tuition fee loan and we paid accommodation and a contribution to living costs. But DC had a PT cheffing job for fun money, which was their occupation during gap year.

XelaM · 20/09/2023 13:50

I will try if I can afford it after so many years of private school. I still have a few years to go.

XelaM · 20/09/2023 14:19

user14699084658 · 20/09/2023 12:50

Yes, also intend helping with significant house deposit. We see it as an effective way of reducing our assets re future inheritance tax…they need money while they’re young!

I agree with this. What's the point in holding on to money and watch your kids struggle while they're young 🤷‍♀️ Care fees will take the money later anyway

CraftyGin · 20/09/2023 14:22

Our five went to independent schools, but they took the fee and maintenance loans for uni.

Anneta · 20/09/2023 16:04

It is true because without paying off the student loan they could not obtain a high enough mortgage for the house that they wished to purchase.

carntresist · 25/09/2023 07:12

Glonda · 09/09/2023 21:45

Yes, but I'm beginning to wish I'd done more research into student loan interest and repayments. We can afford it, but it may be that getting the loans and saving/investing our money would have been a better financial decision. I made a choice based on gut feeling ("little DS mustn't have any debt!") and that's not a good way to do money.

Next year I will research it and may reconsider.

There's also the psychological factor: students may feel (literally) more invested in their degree and may be more mindful about spending money that they'll probably have to pay back. Plus it cuts some of the apron strings from Mum and Dad and gives them more independence as an adult.

You could always pay off their debt later, if you want...

I think my DS is more invested in his degree and mindful about spending 'family money' (which he knows would otherwise be his future inheritence) than many of his friends are about spending student loan money. Some of them seem to have over-bought into the idea that they will probably never have to pay all their student debt off, or that a future government will wipe it, so they might as well borrow as much as possible. I even heard one say they intend to stay under the earning threshold as long as possible so they don't have to pay so much back! Not a good attitude in my view.

You could always pay off their debt later, if you want

Paying the debt off later will cost much more because it starts to accumulate very high interest from day one.

Zanatdy · 25/09/2023 07:21

Didn’t pay for private school, local secondary is amazing and DS left with top grades. His dad is paying for Uni so he doesn’t need to get a loan. I give him some money for food every month. His dad is planning to give him and DD a house deposit too as his mum lives in house in north london which is very expensive so eventually will get an inheritance so can afford both

RedHelenB · 25/09/2023 07:44

twistyizzy · 10/09/2023 19:47

@Allotment123 don't bank on it. If they apply VAT on private schools then they will have to do the same for universities as they are private institutions too.

There's no correlation in that at all. It would be very unlikely.

PerfectMatch · 25/09/2023 08:08

Paying the debt off later will cost much more because it starts to accumulate very high interest from day one - I think this is what some people don't realise. The interest is due from day one, not from when they leave uni.

OlizraWiteomQua · 25/09/2023 08:34

I won't be paying up-front but I will be putting aside the difference between what I have been putting into fees and what DC needs for subsistence over and above the loan (loans aren't actually enough to live on).

DC with SEN so it's not yet clear whether they will end up with a lucrative career that would actually lead to repaying the debt. I'd like to keep an eye on potential earnings trajectory over the first 5 years after uni and make a decision at that point whether it makes more sense to let DC continue with the standard repayments scheme or to swoop in and pay it all off.

At "ordinary" salary levels where tbh mpst graduates end up, the loans system is basically functionally similar to a graduate tax. At £36,000 per year a non-graduate pays £390.50 tax and £234.30 NI each month and takes home £2,375.20 each month. If they are a graduate on the same salary they have to make an additional repayment of £65.29. That honestly doesn't seem too onerous to me and if the likelihood is to just stay in "normal salary" territory throughout a decent functional career it doesn't make a huge amount of sense to pay it off. The total paid back over 30 years would only be about £23,000 whereas avoiding that debt altogether would cost at least £55k and there's no point just avoiding part of it as repayments are the same regardless of size of debt.

It only starts making financial sense to avoid the debt if it starts seeming likely that the career average salary across 30 years will exceed about £52,000 per year. That's certainly achievable for a large proportion of the elite but its not guaranteed at all.

Netcam · 25/09/2023 08:44

DS1 and DS2 have a grandparent (from both sides of the family) fund of about £60k each. This has been a good thing since their father and I divorced and it avoids all complications of who might top up the loan for them. Additionally, neither he or I have a high income and would struggle to pay for this. But they didn't go to private school.

DS1 has just started uni and we talked a lot about how he might organise it all, but at the end of the day, it is his choice. He's decided to get the full tuition and maintenance loan and use some of it to top up the loan, but aims to save £45 to £50k of it for a house deposit, as it would take him a long time to save that much later and he's not going to be gifted that amount again.