Fees from 2006

chugalug

I am a mature student and 2 of my kids are hoping to go to Uni from 2006. Under the system I'm on they would have their fees paid up front by the LA as I'm on a low income (student income!!). I've read that from 2006 fees aren't due up front but will be tagged onto the end of the student loan. Does anyone know how this will affect poorer students? At the moment they wouldnt pay fees (just over £1000) and would have the student loan and a small grant. From next year it looks like the could have a student loan with up to £3000 extra per year tagged onto it but could have extra help in the form of a small bursary. Is this correct? Its bad enough them owing £45000 per year without making it £75000 a year. Or have I understood it wrong and the fees are still means tested? I havent found any clear information about this so hoping someone out there can clarify for me!!

pavlovs_dog

firstly, unless i've got the wrong end og the stick, i think your figures have one to many noughts in :eek: owing 4.5k is bad enough, but 45K :eek: :eek:

secondly, i cant offer precise info about the new system - im fortunate in that it wont affect me. i would recommend that you contact your local LEA to find out the facts as to what your situation will be.

it seems a sad fact of life that almost everyone will graduate with debt these days. im probably going to graduate with £16-20k of debt...and thats JUST my student loan.

only other advice i can give - if you havent taught them already, make sure they have good money management skills before them leave home -damage limitation type of thing

megsykins

Yes they will pay fees, but not until after graduating. I know student debt isn't good, but it's the best form of debt there is and it's paid back as a % of income (same as tax and NI - I believe at 9% of income?) and not as a fixed sum per month so is more affordable.
There will be grants and bursaries starting for the poorest students of upto £4k per year. Your kids should be given info about these through their college / sixth form whilst they're going through the UCAS process. Many of the less popular universities are offering very attractive grant systems and lower fees, although some of the top unis have got great bursaries too!
There's some info here http://news.bbc.co.uk/1/hi/education/3013272.stm

Also, the Student Loans CO website has a financial calculator to see what they could get http://www.studentsupportdirect.co.uk/portal/page?_pageid=34,64184&_dad=portal&_schema=PROTOCOL

The NUS website is also useful.
HTH x

chugalug

Thanks for your replies. Yes I did get carried away with the 0000000000's but it might as well be that much!! As far as I can work out the poorest students who now get their fees paid will instead have them tagged onto the end of their loan. Where before they wouldnt have to pay them now they do (in triplicate). I know debt is a fact of life but saddling young adults with a debt of up to 25000 before they start earning is appalling. Unlike some parents I will never be able to help them out financially - I live in rented housing so cannot remortgage to help them into their own accommodation or support them financially even a little. Oh well, life's a b**ch and then you die!!!

gizmoleeds

The new system is actually going to be better in many ways for poorer students:

This new maintenance grant you mentioned is in no ways small! It is £2,700 a year for students with household incomes below £17,500. This is not a loan - you will never have to pay it back. The university will also be obliged to give further assistance to people from low income backgrounds - at least £300 a year for those eligible for the full £2,700 grant (again, you will never have to pay this back).

If your child goes to a university charging less than £3,000 then they will be better off under the new system, otherwise they will be just as well off as under the previous system.

Remember this is a Labour government - the poor will always be better off after a shakeup! :beer:

See her for more info: http://www.dfes.gov.uk/studentsupport/students/200_2006_entry.shtml

chugalug

Remember this is a Labour government - the poor will always be better off after a shakeup! LOL (you were being sarcastic weren't you????)

Very interesting site, thanks gizmoleeds. Seems theres a lot of juggling about of the money available so will have to study it properly to work out exactly whats repayable. Thanks again for all your replies.

gizmoleeds

chugalug wrote:

Remember this is a Labour government - the poor will always be better off after a shakeup! LOL (you were being sarcastic weren't you????)

Yes. Although I am a Labour member, and I do actually agree with the top-up fees system (for reasons I won't bore you with now)!