What is the nominal budget for a 2012/13 student?

monxton

There is a lot of information about how much money a student can get, but there no longer seems to be a "target" cost of living. The maximum maintenance loan is £5,500 (outside London) or £7675 (London). However for a student from a low-income family, the maximum available (grant + loan) is £3250 + £3875 = £7125 (outside London) or £3250 + £6050 = £9300 (London).

The figures are quite different. Given the cost of student accommodation, I doubt that the mid-income student getting the maximum loan could live on it without further support, whereas living on the total income for a low-income student seems quite achievable.

The student finance information talks about the household contribution where the household income exceeds £42,500 and the loan is gradually withdrawn to 65% of the maximum. This leaves higher-income parents with an expected contribution of up to 35% of the maximum loan, that is £1925 / £2686. But should the target contribution figure really also include the £1625 difference between the finance available for the low-income and the mid-income student?

Please don't reply with lots of suggestions about how to make beans on toast - this isn't a question about how to stick to a budget, it's about what a fair budget should be. I appreciate that this is ultimately a private agreement between parent and child, but having a yardstick would be helpful in the discussion.

MusicalLawyer

If you get the full Maintenance Loan, you don't get the full Maintenance Grant. If you get the maximum Loan, you'd get £2984 in Maintenance Grants (for 2012/2013).

If you're asking for target budgets it totally depend on a few factors..
- Whether you're studying in London or outside of London
- Whether you'd rather live in Halls or Rent a room in a shared house

In London rooms can be £350 (room in a house + bills) to £600 per month (in Halls - electric / water / gas / Internet free etc). Outside of London it's possible to rent a room in a student town for just £200 per month - with possibly another £100 max for bills - then food on top.

Most of the mid-income students get by, by taking part time work. My friends Student Loan JUST covers his rent. His parents give him £100 per month for food. He then works part time for extra cash - one full day per week gives him £200 a month in retail.

I hope this helped. If not then... sorry!

monxton

Well, I'm sure some people will find your response helpful but it doesn't address my question. Sorry if I didn't make myself clear.

I think you're agreeing with me that the mid-income student would find it difficult to live on their loan alone. Do you think that the total loan+grant for the low-income student is OK, though?

(And BTW your first statement is incorrect. If you get the maximum maintenance loan, that is £5650 (or £7675 in London), then you would get £0 in maintenance grants. This is the case I called the mid-income student.)

jennifernil

Budget should be housing + bills + insurance + food + books etc + travel + clothes + mobile phone + going out.

You need to put figures on those. Assuming the student stays away from home in term time, and at home otherwise.......

here in Glasgow I would suggest as a starting point...

housing........£300 x 12 (assuming a decent standard 2 person flat share)
bills .............£50 x 12 (gas, elec, TV, broadband, phone)
insurance......£100
food...............£100 x 8
books etc.......£200 (very variable)
travel.............£200 (assuming living near Uni)
clothes...........£20 x 12
mobile phone..£15 x 12
going out........£50 x 8

total £6320 I think (?)

We paid DD's housing + a £200 per month for 8 months allowance, plus books etc at cost, this was 5 years back, so need to adjust for inflation, anything else she covered by a part time job.

In holidays she had free bed and board at home, plus use of my car whenever she wanted, she only paid fuel, and a free holiday away with us if she wanted.

Adjust for local costs.

susiejq

Hi,
I think it would be impossible for the mid-income student to live on their loan income alone. We have been quoted around £3,800 for halls (with bills) but the loan doesn't appear to cover that so what does our daughter live on?
We calculate we will have to give her at least £70 per week for food, books, social life, travel - inc trips home, washing & drying clothes etc. She may be lucky enough to get a job but I would imagine there's strong competition in university towns. She has a current job that may employ her at home for holidays and she's saving hard herself.
We are hoping to retire in two years so saving hard for our retirement and the figures just don't add up for us.
I think she will be living very, very cheaply!!:eek:

MusicalLawyer

Low income students can survive on the Loan+Grant.
It will more than cover Accommodation and food.

Depends on the course they're studying though I suppose as well. I study Law, and my books come in at £400 per semester. Also depends on the amount of drinking / going out one does as well. But generally this money IS enough for a low income student - they could get a part time job on Saturdays for example which would help them out if they partied a little too much hehe.

MusicalLawyer

susiejq wrote: »

Hi,
She has a current job that may employ her at home for holidays and she's saving hard herself.

Depending on the company, could she not get a transfer to another store?

Often the Uni's SU, Bookstore and general store will have jobs going. Usually there are many many pubs around a University, plus a town, so you will be surprised at how many jobs there will be - you've got to think about those students who are / have left University.

hardtoexplain

monxton wrote: »

Well, I'm sure some people will find your response helpful but it doesn't address my question. Sorry if I didn't make myself clear.

I think your question is simply impossible to answer, as there are so many variables. Including how much your loan will be based on income and other dependents you may have including their status. Included in that, is the variable cost of living in different cities where private housing and halls of residence can vary MASSIVELY in price depending on the facilities, location etc. In Leeds private housing can vary between 45-85pw without bills and halls vary from £3300-6500.

As a guide there is a NUS cost of living: http://www.nus.org.uk/en/advice/money-and-funding/higher-education/average-costs-of-living-and-study/

As another example, in Leeds:

Item

Yorkshire (£)

National Average (£)

Going out/ Entertainment
16.56
17.99
Alcoholic Drinks
17.39
17.04
Clothes
15.01
17.68
Travel
11.74
17.14
Mobiles
7.72
8.44
Non-alcoholic drinks
5.45
6.69
Toiletries
4.73
5.63
Films/DVDs
5.19
6.27
Internet access
4.22
5.36
Cigarettes
10.68
11.92
Music
4.36
5.04
Total

103.05

119.20


And as another guide I roughly live off £3500 loan and £8000 approx income. However, I have debts currently paying off, I also don't have any support from parents and don't go home during the summer (which most students have the luxury of and get their food etc paid for)

Some students find it hard to live off £50 p/w on a budget I live off £25 p/w.

So many answers, not a simple question. I think, from what you say, you are trying to work out middle of the road income. Those who have parents with a middle income, in my opinion, are worse off as their parents cannot often support them but they do not recieve enough loan. I am in this position and the only way I can be at uni is to have a job all year.

hardtoexplain

Oh and I don't buy books. I'm just library savvy.

Dunroamin

susiejq wrote: »

Hi,
I think it would be impossible for the mid-income student to live on their loan income alone. We have been quoted around £3,800 for halls (with bills) but the loan doesn't appear to cover that so what does our daughter live on?
We calculate we will have to give her at least £70 per week for food, books, social life, travel - inc trips home, washing & drying clothes etc. She may be lucky enough to get a job but I would imagine there's strong competition in university towns. She has a current job that may employ her at home for holidays and she's saving hard herself.
We are hoping to retire in two years so saving hard for our retirement and the figures just don't add up for us.
I think she will be living very, very cheaply!!:eek:

But she'll be living on considerably more than an unemployed person of the same age and she'll have the option of earning extra without losing the money she already receives.

Dunroamin

hardtoexplain wrote: »

Item

Yorkshire (£)

National Average (£)

Going out/ Entertainment
16.56
17.99
Alcoholic Drinks
17.39
17.04
Clothes
15.01
17.68
Travel
11.74
17.14
Mobiles
7.72
8.44
Non-alcoholic drinks
5.45
6.69
Toiletries
4.73
5.63
Films/DVDs
5.19
6.27
Internet access
4.22
5.36
Cigarettes
10.68
11.92
Music
4.36
5.04
Total

103.05

119.20

.

Where on earth do these figures come from - over £70 per week for non essential spending? That's a generous budget for a young person earning a decent income rather than a student!