Student Loans 2012

Lokolo

PaulW1965 wrote: »

I am aware that the BOE have a 2% target. And how many times have they met this target in the last 2 years!? How many letters has Merv wrote to explain why inflation has over shot it's target!? The idea that inflation is 2% is ridiculous!

RPI is 4.7% currently, add 3% to that - that makes 7.7%. Please show me an account paying interest of 7.7% (NOW not back in 2008!)

Are you even reading any of my posts?

I have already said twice, that over the shorterm, it is not worth it. But you must think longterm. It is only because of the recession that we are having such high inflation.

The last time this happened, was 20 years ago.

You are only looking at this from only one angle. The maximum being charged (so the OP earning £41k from graduation) and high inflation. The fact is, the OP's son will very unlikely be charged RPI + 3% for at least a number of years after graduation. The chances of RPI being this high for years and years is extremely unlikely as well.

http://www.thisismoney.co.uk/economy

Have you even looked at RPI apart from the 1990s and the last 2 years?

PaulW1965

Lokolo wrote: »

Are you even reading any of my posts?

Are you reading mine?

I have already said twice, that over the shorterm, it is not worth it. But you must think longterm. It is only because of the recession that we are having such high inflation.

Oh you think you can predict the future do you?

Well mystic Lokolo I think I'll leave you to your crystal ball gazing.....

Good Luck with that!

Lokolo

PaulW1965 wrote: »

Are you reading mine?

Yes, and time and time again, I have shown to you that it is worthwhile.

PaulW1965 wrote: »

Oh you think you can predict the future do you?

Well mystic Lokolo I think I'll leave you to your crystal ball gazing.....

Good Luck with that!

So I assume you are going because you are wrong? An apology would be nice. But nonetheless, have a good evening.

Oldernotwiser

PaulW1965 wrote: »

It will be great for your kids not to start life saddled with too much debt and, trust me, they will be grateful.

l

I doubt it. Have you ever sat and listened to students talk about how stupid their parents are to fork out loads of money unnecessarily?

amiehall

I think £6k is probably a fairly conservative estimate depending on what part of the country they'll be living in. I'm not saying it's not possible, it definitely is but that would be a very frugal year. It's easy to forget that a lot of things like sports membership, AU fees, books, bus pass etc all have to be bought up front at the start of the year and can often run into the £100s

I'm planning on returning to university this September and have set aside £800 for up-front costs then am budgeting for around £6k on top of that for the year. I'm an obsessive budgeter though and am hoping to have some spare to put towards my savings. I know I can trust myself with extra money in the budget not to waste it.

I don't know what your son is like with money. Perhaps give the £6k in instalments but I'd be prepared to find another £1k in case expenses are higher. It will be easier to make a more realistic budget once he's decided what university to go to and you know how much the halls are going to cost as this can vary from about £2.5k-£5k for the year and makes up a lot of the variation!

setmefree2

Lokolo wrote: »

So I assume you are going because you are wrong? An apology would be nice. But nonetheless, have a good evening.

I assume he went because he was banging his head against a brick wall!

I don't think he had anything to apologise for ?????

Thanks Paul - plenty for us to think about there.

setmefree2

Oldernotwiser wrote: »

I doubt it. Have you ever sat and listened to students talk about how stupid their parents are to fork out loads of money unnecessarily?

Funny - not one of those students has posted on this thread?! All students posting on this thread seem to be grateful for parental help.

Now you wouldn't be making things up would you?

setmefree2

Tinsley1 wrote: »

I know you've had a few answers but I can give you some specific figures which might help a bit?

My Mum earns about 46-48K a year and I got £5116 for one year of maintenance loans and grants (excluding tuition fee loan) for one year living at a uni away from home. My uni accommodation was £109 a week for 39 weeks (en suite no food) and about £4,250 plus a £150 refundable deposit if its nice when I leave. My Mum kindly agreed to pay half my accommodation and without that I couldn't have survived on the loan I had left. Books in my first term cost me about £260 and I would need to buy about £180 more in my second term. You can try and sell these on and the book shop give you 33% cash of 66% credit for them so not all bad but its a big outlay.

It depends how much people party as to how much they can live off as well! Remember all students are able to get a £1000 interest free overdraft. I went to uni with the idea I would spend that (so in effect have £6,116 available) and get a job in the summer to pay it off, then use it all again in the following year. Getting a job at uni would be great and lots of students feel more comfortable doing it as their first year at uni rarely counts towards their final grade.

I have to say I think its unfair the way kids from poorer parents get more grant and less loan. People in my flat got £3000 loan and £3000 in grants/bursaries meaning they only pay back £3,000. Of my £5,116 only about £330 was grants, so about £4750 had to be paid back. Just because my Mum earns more. Its like they think if your parents earn lower than your friend's parents, you are destined to earn less than your friend, sort of warped logic really...

IMO £8,000 would be plenty to live off and providing your household income is the same or less than my Mum's, at least £5,000 will be given from student finance.

Hopefully this is a copy of the Browne Report, its well worth a read

http://hereview.independent.gov.uk/hereview/report/

Thank you so much for your helpful post!:D

setmefree2

amiehall wrote: »

I think £6k is probably a fairly conservative estimate depending on what part of the country they'll be living in. I'm not saying it's not possible, it definitely is but that would be a very frugal year. It's easy to forget that a lot of things like sports membership, AU fees, books, bus pass etc all have to be bought up front at the start of the year and can often run into the £100s

I'm planning on returning to university this September and have set aside £800 for up-front costs then am budgeting for around £6k on top of that for the year. I'm an obsessive budgeter though and am hoping to have some spare to put towards my savings. I know I can trust myself with extra money in the budget not to waste it.

I don't know what your son is like with money. Perhaps give the £6k in instalments but I'd be prepared to find another £1k in case expenses are higher. It will be easier to make a more realistic budget once he's decided what university to go to and you know how much the halls are going to cost as this can vary from about £2.5k-£5k for the year and makes up a lot of the variation!

Thank You so much for your reply. I really really mean that.

So between £6k to £8k is looking realistic.

I_Wanna_Retire_Someday

Oldernotwiser wrote: »

I doubt it. Have you ever sat and listened to students talk about how stupid their parents are to fork out loads of money unnecessarily?

This has got to be one of the funniest posts I've ever seen on MSE!

Students cry into their pints all the time about parents helping them too much

:rotfl: