how / if to fund my kids uni expenses

Ray_Singh-Blue · 30 November 2016 at 2:47PM

Hello, after some advice please, posted this also in the student money saving forum.

I find myself parent to some teenagers, and the eldest is looking at universities. it appears that the world has moved on a bit since I was a student. I suspect the next generation of Singh's experiences will be a little different -and more expensive- than mine were.

I love the idea that my kids/young adults might graduate with no debt, as I did. However I'm not sure if that's realistic ambition for our family financially. I'm interested to know how much it costs to live as a student in 2016/17 and how common it is for parents to fund either living expenses, tuition fees, or both?

My gut feeling is that we will probably fund our student offspring's living expenses while they will take out loans to cover tuition. Along side this, we envisage saving on their behalf. When they graduate they may choose to use some of this money to pay back student loans, or as a deposit on a flat, or for whatever purpose they choose actually as it will become their money.

How does that sound as a plan?

Strange, I bllnked and over twenty five years seem to have elapsed since I was a student. But here's how I remember the finances working:
- There were no tuition fees.
- I got a grant from the government for about £1000 per term.
- From this I paid to live in a hall of residence which cost about £600 per term and the rest I spent on beer, I mean textbooks.
- Perhaps my parents chipped in too although I think this mainly took the form of food parcels and train tickets home.
- I had no mobile phone and no computer (nobody did), no subscriptions, no insurance, basically a very cheap life. I did however have a bike, a CD player, some CDs mainly Nirvana, and a denim jacket.
- I graduated with no money and no debt. When I started work my first pay check was about £1000 and I felt rich as a king.

Times change eh? They are going to have to be a lot cleverer than I was.

Cheers RSB

silvercar · 30 November 2016 at 9:23PM

I'm interested to know how much it costs to live as a student in 2016/17 and how common it is for parents to fund either living expenses, tuition fees, or both?

Depends on the town they are in.

Also on their choice of accommodation, some uni halls are now very plush, whereas others are probably the same ones you could have stayed in a generation ago.

Martin Lewis wrote an article outlining the amount the government "expects" the parents to fund in assessing how much loan/ grant to give the student. Whether you are able and/or willing to do your bit is down to you.

That said, most students will struggle to manage on the loan alone. Requiring either a top up from parents or a part time job. Whether a part time job is available and/or manageable with the course chosen is something to consider.

All that said, tuition fee loan will pay tuition fees. Maintenance grant / loan should be enough to pay hall fees/ private rent. It is where the rest comes from that is the missing piece of the jigsaw.

I know of plenty parents whose offspring only received the non means tested element, who paid the rent/ hall fees for their offspring and then the student used the maintenance loan for living expenses. This was predominately in big city unis outside London.

missbiggles1 · 30 November 2016 at 9:34PM

Don't forget that your offspring can also help pay for their own expenses by part time and/or holiday work, just as earlier generations often did.

Caroline_a · 1 December 2016 at 11:12PM

Not sure how popular this answer is going to be, but here goes...

Young adults choosing to go to uni are exactly that - adults! As an 18 year old they should be looking at deciding whether they would be prepared to spend many thousands of pounds on their education. If parents pay for tertiary education it becomes far less valued than if they have to make the decision to fund it themselves.

So many youngsters go on to uni it is almost taken as the next stage after school, and so firms are asking for post graduate degrees rather than first degrees. I think decisions have to be made by the young adult whether they want to go to university to prepare for a particular vocation or to further academic knowledge. The days of doing a degree just for the hell of it are long gone due to the escalating costs.

There are many excellent apprenticeships with some of the large firms, in addition the option to go for an entry level job, do qualifications as you work, and work your way up is another option.

I went to university in the days of grants and no fees, so I was lucky - but the percentage of 18 year olds who went was tiny compared with now, so the country could afford it. Now with apparently over 50% of 18 year olds going and the cost escalating to over £40k for a first degree I don't believe that any young adult should expect their parents to fund it. If going to university is what they want to do above everything after school then it should be the young adult investigating how they can pay for it, be it by working during their course, taking the hit for the loans and repaying them in the future, etc etc.

Most 18 year olds would consider themselves grown up. They can get married, join the armed forces, marry, smoke, drink etc etc. Their education should be funded by their own efforts, not by their parents.

Andypandyboy · 1 December 2016 at 11:39PM

Caroline_a wrote: »

Not sure how popular this answer is going to be, but here goes...

Young adults choosing to go to uni are exactly that - adults! As an 18 year old they should be looking at deciding whether they would be prepared to spend many thousands of pounds on their education. If parents pay for tertiary education it becomes far less valued than if they have to make the decision to fund it themselves.

So many youngsters go on to uni it is almost taken as the next stage after school, and so firms are asking for post graduate degrees rather than first degrees. I think decisions have to be made by the young adult whether they want to go to university to prepare for a particular vocation or to further academic knowledge. The days of doing a degree just for the hell of it are long gone due to the escalating costs.

There are many excellent apprenticeships with some of the large firms, in addition the option to go for an entry level job, do qualifications as you work, and work your way up is another option.

I went to university in the days of grants and no fees, so I was lucky - but the percentage of 18 year olds who went was tiny compared with now, so the country could afford it. Now with apparently over 50% of 18 year olds going and the cost escalating to over £40k for a first degree I don't believe that any young adult should expect their parents to fund it. If going to university is what they want to do above everything after school then it should be the young adult investigating how they can pay for it, be it by working during their course, taking the hit for the loans and repaying them in the future, etc etc.

Most 18 year olds would consider themselves grown up. They can get married, join the armed forces, marry, smoke, drink etc etc. Their education should be funded by their own efforts, not by their parents.

It seems you believe that it is acceptable for the state to fund university education but do not see the need for parents to do so. Is that not a bit hypocritical?

We have helped all our older kids through university and from there they have gone on to have good careers. Our youngest is in his second year of a four year course, and we pay his rent and bus pass and often send food parcels!

It has never been a case of their expectation, but given that our income precludes them getting more than the basic loan, we feel we should help out and make up that shortfall at the very least. I imagine most parents in our position feel that way, certainly all our friends do/have done the same as we have.

You say they are adults, but yet their loan is dependent on parental income, how do those two things mesh together?

Caroline_a · 2 December 2016 at 10:17AM

Whether I agree with the state funding tertiary education is really irrelevant - just when I went they did. Payment for this has in addition always been dependent on levels of parental income - I remember that people who had parents who were separated often did very well with a full grant plus money given from both parents.

However, I do believe that 18 year olds should support themselves, whatever they do. We have many threads on these boards about how much board should working young adults living at home should pay, and usually with few exceptions people agree that they should pay their own way. Why should it be any different for those choosing to go to university? There was someone on Radio 4 yesterday who said he reckoned it would cost him £17k for each of his children to go to university - madness!! and how many people can afford that sort of disposable income?

In addition, what does it teach the student? And conversely, how much pressure does it put when they are told 'go to uni and mum and dad will pay for you..'

As I said, I didn't think that my view would be particularly popular, but university isn't for all - and shouldnt be!

Andypandyboy · 2 December 2016 at 10:51AM

People can't have it both way though. At 18 they are either adults with their own income or none against which the loan should be assessed, or they are dependents and parental income is taken account of.

Caroline_a · 2 December 2016 at 11:00AM

The problem is that there are many poorer families who wouldn't be able to afford to support them after 18. So if the youngster wants to go to university then they have to be prepared to work to support themselves. Far too many people are going to university because they think that it's what they should do. Increasing numbers are dropping out because they find it's not what they want - so that means lots of money is wasted! There is of course the additional pressure that must be on the ones who are funded by parents to continue doing a course they don't want to do....

Andypandyboy · 2 December 2016 at 7:55PM

I agree that far too many go to university, it needs to be a considered choice and of course there are other choices out there. With regard to the poorer families their children get the same as mine do. We make up the shortfall not much more.

With regard to getting a job, that is an option but it is course dependent. All of ours have been on demanding courses (STEM/law) that left little time for work if they wanted to achieve a higher class degree, which they all did. We have always been happy to support them during this period to enable them to concentrate on their studies. If they had messed around it would have been different. Studies complete, they got good jobs, saved and bought houses at relatively young ages, so for us and them, it paid off.

I think it is morally indefensible for parents not to supplement the loan to at least the degree it is affected by their income.

silvercar · 3 December 2016 at 12:34PM

It is a bit rich to say that because you benefited from a decent grant to go to university you won't help your own children to go to uni. The playing field is now different. It is a fact that the government gives loans based on parental income, it is also a fact that more students go to uni now than in previous generations.

If you choose to not support your offspring through uni, you could be putting them at a disadvantage to the many students who are able to rely on parental support to get their degree.

If your child is not able to secure a decent apprentice scheme place, you are putting them at a decided disadvantage in their future career by not offering them some support.

With so many people armed with degrees looking to start their careers, it will be harder than ever for those with nothing post A level/ highers to make their mark.

The problem is that there are many poorer families who wouldn't be able to afford to support them after 18. So if the youngster wants to go to university then they have to be prepared to work to support themselves. Far too many people are going to university because they think that it's what they should do.

Those coming from the poorest families get fairly decent grants and bursaries from the universities. It is the 'just about managing' group who find things really tough. You can see amongst the students that it is the ones from the squeezed middle that are struggling financially.

Caroline_a · 3 December 2016 at 4:52PM

It is a bit rich to say that because you benefited from a decent grant to go to university you won't help your own children to go to uni

Did I say that? Firstly I didn't have a large grant at all as both parents worked, and secondly only one of mine went to university - interestingly the other two who chose not to go earn far more than their sister! Secondly the one who went to uni did get some help, but as a single parent we worked it between us with her having part time jobs and me helping out as much as I could. She certainly wasn't disadvantaged.

However, I think there are too many parents subisdising children who shouldnt even be at university. There are so many doing degrees which employers wouldnt touch with a bargepole. The nefarious 'Business Studies' usually has little to do with actual business practice. I interviewed a girl last year who was very sweet, but didn't have a clue what was meant by problem solving. When asked what she would do in a particular situation she said she'd ask her mum! She had a Masters.... needless to say she didn't get the job.

how / if to fund my kids uni expenses

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