Saving for university costs: How much?

atush

Yes, but they thought many would charge 6-7K, even 8K. Then almost all charged the full 9K.

given the need for nurses in the NHS, and the wish of govt to limit immigration, subsidizing nurses training should be considered.

WendellG

I saved around £3k/year in an ISA for a 3 years in my son's name from aged 16 so when he started university he had £9k to live off for 3 years.

Ignoring the fees, the non means tested student loan pretty well covers the accommodation cost so he had £3k/year just to live on. He's now coming to the end of the final year and hasn't asked me for any more so I think I guessed what he needed pretty well.

It was a risky strategy as he could have gone out and blown the lot in the first year, but I trusted him to manage the money himself. If anything it had the opposite effect that he was paranoid to eek out his stash for 3 years are kept detailed records of what he was spending.

He'll have around £25k debt in loans and fees but I can't see any incentive for me to help him pay it off, and for anyone going now that will be £45k. If I had any cash I'd prefer to help him with a house deposit than worry about paying off the loan. It just turns into a graduate tax.

mary

atush wrote: »

Well, as it doesn't cover the 50K in max loans it can't be the Capital part. That was the point of my post.

It must be the interest. But seems lower than 9% to me, and that is the new rate.

Maybe it's me not understanding.

To recap the total £9K + £7675 x 3 = £50,295 (with £25K salary)
Martin's calculator says the total you "repay" is £40,570.
I know this is a smaller amount than the Total borrowed, but that is my point. You only effectively are repaying 4/5 of your total capital borrowing and then it is written off after 30 years. Yet whilst you are repaying that £40,570 of capital you are also paying
interest as well. So it is misleading to say that the only money you are parting with is just the £40,570 - it's a lot more than that.