Help With Student Loans - HERE!

RooVic

I'm having sleepless nights worrying about what and how we are going to be able to contribute to our two older children's university maintenance costs - especially as we don't yet have a definitive idea of what the loan amount will be.
We do not fall into the 'low income' bracket but are by no means wealthy and have two younger children at home too. Our eldest has a place at a London University and I am seriously worried that we won't be able to afford for him to survive there. He intends to find a part time job as soon as he is at uni, but again, he has to take the leap and be living there, attending uni with the commitment of tuition fee loans etc, before he can find a job.
Our daughter has a place at a more local university so intends to live at home to cut her living costs - I have to say I feel relieved, but also sad that this was part of her decision making when choosing her university course.
We are desperate to help as much as we can to help their education but when is enough enough? What options as a parent do I have to free up money to help out? Should we swap to an interest only mortgage and free up some cash each month that way? Or sell our home and rent? And how are we going to be able to do all this again for the younger two - currently 13 and 10?
How did we end up feeling like we might be the ones preventing our kids fulfilling their dreams of university which we have encouraged by not earning enough.

Savvy_Sue

RooVic wrote: »

Should we swap to an interest only mortgage and free up some cash each month that way?

I'd be gob-smacked if you could even do that now. I know Nationwide were one of the few offering this 2 years ago, but no longer do, but in any event, the question is "how will you repay?" If you don't have a sensible answer to that question, it's not a sensible option.

Before even considering selling and renting, check rental prices in your area. I know we'd be paying a LOT more to rent something similar to what we have now than we would on a repayment mortgage.

Downsizing, maybe, if you're not expecting the boy back or already have more space than you need.

You have to face it, the older two are (or soon will be) adults. They have made choices. One of the things we have to teach our children is that choices have consequences, and that being supported by your parents may not be an option if you make expensive choices.

3 of mine have gone through Uni without expecting parental support, other than living at home rent free in vacations (and the youngest doesn't even do that!) and having a lift to and fro with all their 'stuff' at the beginning and end of the academic year. I haven't lost sleep over this ...

RooVic

I appreciate what you are saying and my children are VERY keen to fly the nest and cope on their own, however, their options for paying for uni living costs are limited by how much we earn as their parents, regardless of how much we can afford to help them. Therefore, we feel it is our fault if they can't get by on their maintenance loans and part time work as we are supposed to be supporting them, or at least that is the impression I get from Student Finance.
We have a 3 bed semi-detached worth around £180,000 with a mortgage of about £90,000. We could downsize to a terrace, which locally would be around £140,000. Seems a huge decision to make to help them out and not sure if I asked them that they would want us to do it. Have a feeling they would just not go to university...

jackieblack

RooVic wrote: »

their options for paying for uni living costs are limited by how much we earn as their parents, regardless of how much we can afford to help them. Therefore, we feel it is our fault if they can't get by on their maintenance loans and part time work as we are supposed to be supporting them, or at least that is the impression I get from Student Finance.

Yes, that is the principle.

Have you had a close look at your household budget to see where savings can be made that could then be used to help support your children?
We've worked out that our food, electric, water and petrol bills will all reduce when DD goes to Uni in September, that's about £150 a month straight away.
We have followed all Martin's tips about switching and making sure we're on the best tariffs and reducing unnecessary spending and waste generally, but if you haven't reviewed those in a while it's easy to let things slip. Every time we review our household expenses we find some way to slim them further

whodathunkit

Yes, people seem to forget the money they'll save when the child in question leaves home for university. Just shifting that supporting money from the household budget to student maintenance is often all that's needed.

Savvy_Sue

Another thought is that there's a long hot summer ahead: if the student-to-be hasn't been working through sixth form, then getting a summer job and saving every penny should be a priority, IMO. And remember that some shops may let you transfer to another store for term-term, assuming there are vacancies there.

Two of mine did paper rounds and then went on to work at the local cinema (which was an excellent job for a 17 yo!) They half funded optional school trips, but still had healthy bank balances when they set off to Uni.

No. 3 thought paper rounds were too much like hard work, but was offered a cinema job on the basis that his brothers had been OK at it. He's probably the least well off, because he likes to eat meat and is (a lot) fussier about his clothes - no George basics t-shirts for him! He asks me to fund some things which his brothers never dreamed of (the latest was his gown hire for graduation!). But as far as I'm concerned, his finances are his problem not mine until he chooses to talk to me about them.

And yes, we saved a fortune when he moved into student halls. He was at home for the first month of Uni, but after that I could buy food one day and still find it in the fridge the next! Also no random lifts around the city, no taking him out with us and paying for him to do whatever, and so on.

Savvy_Sue

BTW I'm not saying getting a summer job will be easy. But it should be attempted!

Username55

Hi

I am not sure if anyone will be able to help, but I applied for my tuition fee for my final year through SAAS and have received a letter to state that I am no longer eligible for funding as I have already had 5years of support. Basically, I had a "false start", then completed a HND and went on to a 4 year sandwich course. I am on placement year this year and had to pay a small tuition fee of 700 which I was originally going to pay myself as I thought I may affect my final years funding, however, I called SAAS and queried this with them and they advised that I could apply for this and would still get funding in my final year, but now this is doesn't seem to be the case and I am unable to complete my final year as there is no way I can pay the fees. Is there anything that I can do?

Thanks

whodathunkit

Username55 wrote: »

Hi

I am not sure if anyone will be able to help, but I applied for my tuition fee for my final year through SAAS and have received a letter to state that I am no longer eligible for funding as I have already had 5years of support. Basically, I had a "false start", then completed a HND and went on to a 4 year sandwich course. I am on placement year this year and had to pay a small tuition fee of 700 which I was originally going to pay myself as I thought I may affect my final years funding, however, I called SAAS and queried this with them and they advised that I could apply for this and would still get funding in my final year, but now this is doesn't seem to be the case and I am unable to complete my final year as there is no way I can pay the fees. Is there anything that I can do?

Thanks

Did you get a confirmation in writing regarding your final year?

Username55

No, stupidly I didn't