Do you want your kids to go to university ? then have you sorted out the funding ?

property.advert

£9,000 a year today in fees, around £10,000 a year in living costs and more in some locations, can give rise to a £25,000 a year bill. Over 3 years that is £75,000 and with some courses taking longer than three years, there could be £100,000 plus expense on the horizon when little Jonny and Jemima reach university age.

Back in the early 1990s we knew loans were the way forward with grants a thing of the past and yet a generation later, we have parents pleading ignorance and pointing out that they haven't put anything aside for their children's education.

So what now ? we know it is going to cost a fortune and I bet quite soon we'll see the removal of the £9,000 cap and fees up to those charged to international students (around £30,000 per year for some courses) but have you made provision ?

A best case scenario is perhaps £100,000 in today's money and around £250,000 in the worst case. Those are 2011 figures, not 2029 figures !

For the higher figure, you'll need £601,655 (5% education fee inflation ) which, if you allow for investment returns of 5% per annum, seems to come out at £1,723 a month !!! http://calculators.product.bizezia.com/calculator.aspx?s=QcgKWnu4&calc=SAVINGSGOAL even at 7.5% it comes out to £1,323 per month.

And then there is the multi hundred thousand pound deposit your child is going to need to get onto the property ladder !

Anyone putting this away ?

Hastobe_Katt

All my kids are going (or have gone) into their education with the understanding that they have to pay for it. I had to leave school at 16 and go to work (my family needed my income). I subsequently went to study at uni part-time (sponsored by my employer) and got my degree, masters and professional exams without needing funding by the tax payer / my parents. All my study choices were based on my employability afterwards. In contrast I saw my brother (who was much younger than me and so didn't need to get a job at 16) go to uni and choose his degree subject on the basis of whichever uni / course would accept his (less than brilliant) A level results. He then spend most of his three years in the student union bar / at parties.

If more students weren't expecting to be bailed out by 'the bank of mummy and daddy' there might be some smarter choices being made - and less people doing degree courses in Beckham, media studies etc.

Of course, when my kids get their degrees (and if they have been sensible and worked hard and not partied for their entire student life) then we will probably step in and help out...but not until they have demonstrated that they are responsible. The money to help out would be from 'downsizing'. We have a very large house atm which is proving more and more of a burden as the years go by.

We don't think this decision has deterred our children from going to university as they have all seen how we (my husband and I) have benefited from our education. Daughter no.1 is studying nursing at Keele but already has her own place (with her partner) and is independent (she does agency work at weekends to supplement her bursary). Son no. 1 is going to study theoretical mathematics at either Bath or York this October - he has already saved nearly £4k from part-time jobs as a student. Son no. 2 wants to study geography - but focussing on ecology / renewables and is hoping to go to Bangor (next October). Again he already has several thousand saved from part-time student jobs.

malik999

I have made a note to put £601,655 aside for each child, thanks for the headsup/calculation.:think:

CLAPTON

fees aren't paid up front but can be borrowed from the taxpayer and only repaid once you earn 21k and then at 9% on the earning over 21k

and one doesn't need 10k per annum living expense either

ultrawomble

property.advert wrote: »

Back in the early 1990s we knew loans were the way forward with grants a thing of the past and yet a generation later, we have parents pleading ignorance and pointing out that they haven't put anything aside for their children's education.

Before loans and fees were introduced, ~5-10% of the population were deemed intelligent enough to benefit from a higher education. Current expectations are now ~50%. Does that really stand up to scrutiny?

Lokolo

property.advert wrote: »

£9,000 a year today in fees, around £10,000 a year in living costs and more in some locations,

LOL what planet do you live on?

HappyMJ

Lokolo wrote: »

LOL what planet do you live on?

Same planet as you. It's the figure that most universitys say that someone will need for 1 year. Personally, I don't believe it.

melancholly

HappyMJ wrote: »

Same planet as you. It's the figure that most universitys say that someone will need for 1 year. Personally, I don't believe it.

i don't think that's what most unis say:

http://www.ed.ac.uk/studying/international/finance/cost-of-living
http://www.ncl.ac.uk/undergraduate/finance/living.htm
http://www.essex.ac.uk/studentfinance/cost_of_living.aspx
http://www.swan.ac.uk/postgraduate/money/livingexpenses/
http://www.ox.ac.uk/feesandfunding/fees/livingcosts/undergraduates/

most seem to pitch it at £6K to £8K, with some of these websites suggesting it's ok to spend money on non-essentials like clothes every month within that budget!

i don't believe you need £10K to live off at uni. although i believe many students could easily spend that much, but that's a separate issue!

Lokolo

HappyMJ wrote: »

Same planet as you. It's the figure that most universitys say that someone will need for 1 year. Personally, I don't believe it.

Having been a student for the past 4 years, I can assure you, very very very few people will need as much as £10k to live off in a year.

Idiophreak

HappyMJ wrote: »

Same planet as you. It's the figure that most universitys say that someone will need for 1 year. Personally, I don't believe it.

You probably don't believe it, because it's insane. Student living costs are much more like £6k per year - and most students will make a good half of that working part time or in holidays.

...and, whilst it's rubbish that they have to, if my children apply for university, they will get loans for their tuition, so I don't really need to save that, either.

Summary: There's actually no great drama.

IronWolf

£9,000 a year today in fees, around £10,000 a year in living costs and more in some locations, can give rise to a £25,000 a year bill.


This has to be one of the best quotes of the day. Firstly I was gobsmacked that anyone thinks students need £10k a year, I lived off at most £5k a year.

BUT, then he adds 9 to 10 to get 25!

Brilliant