Saving for university costs: How much?

MrsCautious

Alex92 wrote: »

Are you interested in adopting a 20 year old boy? :P

Oh go on then. Just so long as you sort the garden. (Not a euphemism.)

Reue

Jegersmart wrote: »

Another example of a lot of people not being able to stop relating the issue at hand (how much?) back to themselves or their own situation. I genuinely wonder why it is so difficult for a lot of people to be even remotely objective?

J

Because advice is based on experience, and experience is gained from each of our own situations.

atush

Well more personal experience. Son1, graduated with a double honors in Politics and economics. As a double degree, he had twice as much work as those he knew that took only one subject. So didn't work at Uni.

He did find employment in the summers, and he is now halfway to being a chartered acct, having gotten a coveted graduate job and has passed all his exams for this year.

He is living at home, and saving loads of his salary (although he has joined the pension scheme). So he is on track to move somewhere else once he qualifies, buy a home etc.

So I think I have empirical evidence my approach is working. And he isn't a financial numpty wastrel lol

atush

Todays students, if their parents pay their Living expenses only, will still have a min of 36K in debt as the fees are so very high now. Some degrees such as medical are more.

If they are paying their living expenses too, a 3 yr degree at a London Uni could well see debts upwards of 60K+. At rates much higher than previous students had to pay (as the SLC rates are quite hiugh for new students).

Idiophreak

atush wrote: »

Well more personal experience. Son1, graduated with a double honors in Politics and economics. As a double degree, he had twice as much work as those he knew that took only one subject. So didn't work at Uni.

Out of curiosity, is double honours actually a thing? Or do you mean joint honours?

I had joint hours in my first degree - but still worked every weekend (140 miles from uni, too )

atush

I am not sure, I have a Bachelors of Science degree, from a top US uni lol. so may have got it wrong.

I do know he complained how easy they had it for sure (his mates just doing Poilitics). And yes, I did encourage him to earn during school but his earnings last summer were more than sufficient to see him thru til the end.

As for you, well done. But you paid less in fees and interest on your student loans. Or you may, like my husband did, go when there were no fees plus there were grants lol. Bet your parents are proud of you.

I had to work every summer and during term time- have you seen what US unis cost lol? My parents paid for the first 3 years, but I had to get a loan for the last one. And my student loan had an interest rate of 9%

TheConways

I was given a couple of one-off gifts to help, and managed to get by. (Was at uni in 2000-2004). My advice would be to let your daughters find their own way... It will give them some hunger to earn their own money, find a good career, be self-sufficient.

I knew a fair few people at Uni who were given a fair chunk of cash by their parents to live on.. I was quite jealous! However, I couldn't help but notice many lacked ambition to earn their own money as they had got used to relying on their parents.

MrsCautious

I hear you TheConways thanks for taking the time to reply, but I'd respectfully point out that they're already showing signs of being ambitious with a strong work ethic, all the more reason for me to help them financially so they don't end up as shattered as I was from trying to work so much.

flea72

50% of students will never repay their student loans, as they will never earn enough before the 30yr cut off. If you earn £21k you repay £7/m not exactly a figure that will bite into earnings. Way less than any iphone contract they would have no qualms about taking out

In the case of the OP, having daughters, the likeliehood is they will pay back very little of their loans, due to taking career breaks to raise kids, so why waste your savings to be put them throug uni, when the money can be put towards them setting up home, further in the future

I dont see why parents think subsidising their kids, beyond basic living costs is necesaary. Students from low income families are entitled to about £7.5k maintenance in a mix of loans/grants. That is more than enougn to cover rent and food, plus some fun time. Even with a household income of £45k you get a large enough maintenance loan to cover rent, so all a parent needs to pay for is food (usually about £50/wk if catered, but way less if s/c)

With alot of unis having core texts available in ebooks, there is no longer the need to buy books. Printing costs are minimal as lecture notes are available online, so thats another cost saving.

If i had spare cash then i would save it for when my kids needed a lump sum, ie mortgage deposit. Using it to put them through uni, is a complete waste. Student loans are not debt, they will have very little affect on their financial feeedom once graduated and in all honesty, most students dont even acknowledge the financial support their parents give, as its considered the norm for parents to keep paying 'pocket money' until their children have well paying jobs.

Im sure if you went 5-10yrs in the future and asked your now grown up, qualified kids, which they woud prefer. to pay £7/m out of their wages for 30yrs and be given 20k towards a house deposit, or Be able to have en-suite and a few extra beers a week, whilst at uni, most would have preferred the first option

Orange_juice_2

I'm a student and all of my friends self fund their studies or the grants/loans cover it quite happily. Some have part time jobs, others don't. As long as you don't expect the most kitted out student flat and instead get a house share with friends and pay the bills directly rather than through a "bill paying company" then costs stay fairly low. I think they occasionally get their food shopping paid for by their parents and that's about it.

On the flip side.. another friend of mine was given £30k by a grandparent when they started university.. that money has now almost gone and he is in his third year oh and he also has all the loans etc.

There is also my friends who do receive £500 a month for example and spend it all on partying.. constantly.

Maybe buy their first lot of shopping and see how they cope? Or if you do have the money to spare, buy the house that they will live in however have them pay the mortgage and bills.

Good luck with it