Parents on DMP How to Fund Uni

louise3965

Hi hope someone has some bright ideas. Am just scaring myself witless on here, long story short we have a 16 year old who wants to go to uni in 2010 and we want to support her. But in the past we ran up large debts which mean we are paying £1700 per month on a Debt management Plan, which is all our spare money. Stupid, we were I know but we are trying to pay it all off. Its a 6 year plan and in August this year we will be half way through. But in 2010 we will still have 2 years left. We earn decent salaries and wouldnt be panicking if we werent paying this, but we are and reading the guides above, realise she wont be entitled to any help at all - loan for tuition fees yes, but nothing else as our salaries together are nudging 70k.

I know we have been stupid but I dont want her to suffer, can we do anything?

456789

Is there any way to restructure the plan? shift some debts into the future to free up some working capital?

louise3965

No, on a DMP you have to pay the agreed amount for the agreed period. All creditors get an equal share of the money available, you see.

CLAPTON

perhaps your child should consider going to a local Uni so they can stay at home and hence reduce costs.... common in most parts of the world.

pavlovs_dog

whilst it must be disheartening not to be able to help her your daughter will by no means be alone in her situation.

she will be able to claim 75% of the student loan (only 25% is assessed on your income). she may be able to work part time. If money is really tight she can apply to the uni's hardship fund for extra help.

depending on her subject area she may also be able to try to win a scholarship. Some unis offer general scholarships (payable for ability in things such as music and sport) rather than the actual subject she wishes to study. the secret is to research early as they often have quite strict timetables.

there's also the option that she can get a part time job over this summer and next and save as much of her income as possible to lesson the burden on you and her when her course starts (several of my friends did this and it made a big difference).

finally, teach her to budget now and you'll save a lot of heartache. now is also a good time to learn how to cook if she cannot already do so (that way she can use all the tricks in the OS book to stretch her money that bit further)

louise3965

So she can claim 75% of the student loan for fees the other 25% we have to pay? is that right?

She already works and can transfer to wherever she studies so thats ok (she knows she will have to work and is happy to continue)

We have become quite savvy with money over the last 3 years - its such a pity we didnt learn 15 years earlier, but ho hum. Thanks everyone for your time x

Oldernotwiser

louise3965 wrote: »

So she can claim 75% of the student loan for fees the other 25% we have to pay? is that right?

She already works and can transfer to wherever she studies so thats ok (she knows she will have to work and is happy to continue)

We have become quite savvy with money over the last 3 years - its such a pity we didnt learn 15 years earlier, but ho hum. Thanks everyone for your time x

Regardless of your income she will be able to get a loan for 100% of the fees. It's the Maintenance Loan that is non means tested for 75% so she will be able to get this. Many students manage on this, combined with part time work.

dieselhead

Oldernotwiser wrote: »

Regardless of your income she will be able to get a loan for 100% of the fees. It's the Maintenance Loan that is non means tested for 75% so she will be able to get this. Many students manage on this, combined with part time work.

Yes, please don't feel that you have to support your daughter financially at university and her ability to go is dependant on your finances, despite what the student loans company recommend in most cases my own included my parents offer very little financial help. Most can't and I think thats the way it should be. Your daughter will be 18 and need to learn to budget, to get a part time job and manage her time and money effectively.

Your main support should be more emotional rather than financial, on the end of the phone and preparing her for the exciting move to uni, teach her to cook, perhaps introduce to these boards.

One thing that you could do is save a small emergency fund for her, that you look after and if she doesn't need it perhaps it could form a present for graduation.

louise3965

So the maintenance grant she will be able to get 75% no matter what we earn? Is that right? Sorry for being thick but this is new and confusing!!!

Dieselhead that is a very sensible post and I hope my daughter is as mature as you are. I think she will be, she's a great girl, but I just dont want our past mistakes to affect her iyswim. Emergency fund idea is good, thanks

Oldernotwiser

louise3965 wrote: »

So the maintenance grant she will be able to get 75% no matter what we earn? Is that right? Sorry for being thick but this is new and confusing!!!

Yes, that's right. 75% of the Maintenance Loan isn't means tested and is available even to milliionaires' children;the Fee Loan isn't means tested at all.

Hope you find this a little reassuring for the future. The best thing you can do for your daughter in the next couple of years is to teach her how to budget and to keep herself inexpensively. There's lots of information on things like eating cheaply on the Old Style Board and budgeting on DFW. You might well learn a few tricks yourself, if you need them.

Good luck.