Student Loans 2012

setmefree2

Roughly, how much do students need to live each year away from home?

The poorest students seem to get £6k from the government in Loans and Grants, so presumably that is the baseline - will £8k do it? Or is is more like £10k?

Oldernotwiser

setmefree2 wrote: »

Hi - I'm an accountant - I also have 2 degrees - and trying to get my head around the fact that these loans may be potentially poisonous and damaging to my son's financial health has taken me hours!

How do you expect my 16 year old son, who has AS level exams in just 4 weeks, to do that?

You may be happy to put your faith in politicians - I am not.

I'm not sure where the politicians comment comes in to things and I was certainly not suggesting that your 16 year old does it all himself. However, it would be he who has to apply for the loan, he who has to be in debt and he who has to pay the money back, so I do think it a good idea if he was involved in the process at an early stage.

When it comes down to it, this is his future we're talking about and he isn't one of your clients.

setmefree2

Oldernotwiser wrote: »

I'm not sure where the politicians comment comes in to things and I was certainly not suggesting that your 16 year old does it all himself. However, it would be he who has to apply for the loan, he who has to be in debt and he who has to pay the money back, so I do think it a good idea if he was involved in the process at an early stage.

When it comes down to it, this is his future we're talking about and he isn't one of your clients.

Thank you for your comments. We obviously see things in a very different way. I am very aware that this is my son's financial future at stake, which is why I have absolutely no intention of seeing him stitched up:).

Do you have any kids?

AndyGuil

- Double post -

AndyGuil

setmefree2 wrote: »

What nothing, zilch, nil, zero - not even RPI?

0% interest, i.e. no interest to be paid. Effectively the loan will be eroded by inflation each year. When they achieve a salary of £21k per year then interest will be charged and that increases again at £41k.

There are two different loans available. The first is the tuition fee loan. The second is the maintenance loan which is for living expenses. The latter is still means tested. The previous system only removed up to 25% of this loan and expected the parents to make this up. No mention of any changes to this have been made.

I expect they will need £4k on top of rent for living expenses (books, food, social, travel etc.). They typically have around 3 months away from university in the Summer which they can work and earn the money needed for living.

Oldernotwiser

setmefree2 wrote: »

Thank you for your comments. We obviously see things in a very different way. I am very aware that this is my son's financial future at stake, which is why I have absolutely no intention of seeing him stitched up:).

Do you have any kids?

My background is in education and guidance.

If you saw as many posts as we do on here from graduates who know nothing about the debts they have incurred ( because their parents have done it all) you would understand the importance of involving your children in this.

jennifernil

setmefree2 wrote: »

Roughly, how much do students need to live each year away from home?

The poorest students seem to get £6k from the government in Loans and Grants, so presumably that is the baseline - will £8k do it? Or is is more like £10k?

That is a bit like asking how long the string is!

Costs will vary according to where they are studying and the level of luxury you wish to fund.

For example, to rent a 2 bed flat here in Glasgow will cost anything from £500 to £900 per month, so £250 to £450 per head assuming 2 sharing. Let's call it £300.
Gas and electricity will depend on many factors, but will be at least £20 per head per month on average. TV licence about £75 each per annum.
Telephone/broadband......depends on the provider.....maybe £15 per month each.
Food and cleaning materials........max £100 per head per month.

So, with most rentals being for 12 months, that is a minimum of £450 per month for the basics. £5400 per annum.

Books and stationery......very variable......allow maybe £150.

Travel and clothes.......very difficult to say.

Having fun........?

So on £6000 per annum it could be possible.

If you want to finance this yourself, I suggest paying the rent + books as required and giving a basic allowance in term time for bills and food, anything else the student gets a job to cover.

Lokolo

setmefree2 wrote: »

Thank you for your post. He doesn't have to take this loan does he?

No he doesn't.

Lokolo

AndyGuil wrote: »

0% interest, i.e. no interest to be paid. Effectively the loan will be eroded by inflation each year. When they achieve a salary of £21k per year then interest will be charged and that increases again at £41k.

There are two different loans available. The first is the tuition fee loan. The second is the maintenance loan which is for living expenses. The latter is still means tested. The previous system only removed up to 25% of this loan and expected the parents to make this up. No mention of any changes to this have been made.

I expect they will need £4k on top of rent for living expenses (books, food, social, travel etc.). They typically have around 3 months away from university in the Summer which they can work and earn the money needed for living.

I would say £4k on top of rent is generous. But means the student would never struggle.

I get £225 a month, plus I take out £100 a month from savings. With this I pay bills, food, go out and pay around £50-£100 in petrol a month.

I then take more out of savings for car insurance and xmas (for pressies!). Which is +1k

My accomondation is £2500.

Total Approx Expenditure (including running of a car and rent) would be £7,500 a year.

Which matches my budget spreadsheet.

setmefree2

Thanks so much for your responses. My OH and I had a look at some accomodation costs at a variety of Unis and came up with a figure of roughly £100 a week - often this includes food and often this can be done for 32 weeks. This would be in the first year.

So I think the very top end of what it costs is £8k p a - including books, etc. So £20k to £25k in maintenance for a 3 year course.

Does that seem correct?