MSE News: Student loans are not big enough

Prothet_of_Doom

Taiko wrote: »

The cost of the accomodation seems horrid, which would lead me to believe that the universities are, to some extent, profiteering off the backs of a captive audience. Granted, students can privately rent, but in a first year the chances of them being willing and able to do so are small..

Having been on numerous fact finding missions with Child 1, (now in the 3rd year of a 4 year MChem), and Child 2 (Just put in UCAS form for MPharm), I can safely say that the prices vary, but most push the boundaries of the market rate, because they sell on the basis that "You'll make life long friends from the people you meet in Halls" -

Well you might, but you might be grateful to never see them again.

One university stood out in that they had a Social Society for students who choose to live at home, of which they reckoned a 1/3 of students did. That's Birmingham.

One stood out in the open days as creaming the students, BATH, but all have a range of prices.

One issue though that we found with child 1, is that you might chose the self catered, shared bathroom, lowest price room, but you might get offered the Fully catered, ensuite, with double bed, highest price room.

At the end of the day you are not forced to rent off the university, and there are students who have signed up to renting privately in year 2 who will fail year 1 and will be desperate to get someone else to take on thier obligations.

Dunroamin

Everything I've read says that the most expensive, en suite halls of residence are those which are filled first. Either today's students think that they deserve this level of accommodation or they have no idea what money they're going to need for everything else.

miller

Doing a very rough search suggests en-suite vs. shared bathrooms can cost betweeen £10-40 a week extra for comparable halls. Catering generally tends to be £40 a week extra.

Help_i_am_a_Mum_of_four

Sharon87 wrote: »

I agree the accomodation costs are way too much. They're better off living in a shared house than halls! My uni halls (from 2005-2008) were about £60 a week. My rent in shared house in a town was between £200 and £250 (I lived in 2 houses) a month. Ok so housing has gone up, but for the universities to be charging an amount only the rich can afford is just another way of saying they don't want poor people!!

If you were living in London in a shared house you could pay around £500 a month (for a small room, or in a not so nice area), which is £6000 per year - still cheaper than some halls of residence.

.....how can universities justify such a huge leap in accommodation charges. Two kids at uni , each borrowed £4,500 max allowance for accommodation at uni that's over £5,000 a year....how are they expected to eat without our help. I have another two rethinking going to uni now because they see how the other two struggle.
My other gripe and worry is that the 17 year olds are only being paid under£4 an hour for working in high street retailers. Why does minimum wage not apply to under 21's.....is this fair? MacDonalds and other high street companies don't pay minimum wage until 21 ....how are the youngsters expected to earn enough towards uni living with such low pay and zero hours contracts? Why are the unions and the government perpetuating this ageist state of affairs and not supporting fair pay for all regardless?
The next time you shop ...ask the shop assistant how much an hour they earn...and what it costs them to get to work.I think you will be as shocked as I am!

Dunroamin

Help_i_am_a_Mum_of_four wrote: »

.....how can universities justify such a huge leap in accommodation charges. Two kids at uni , each borrowed £4,500 max allowance for accommodation at uni that's over £5,000 a year....how are they expected to eat without our help. I have another two rethinking going to uni now because they see how the other two struggle.
My other gripe and worry is that the 17 year olds are only being paid under£4 an hour for working in high street retailers. Why does minimum wage not apply to under 21's.....is this fair? MacDonalds and other high street companies don't pay minimum wage until 21 ....how are the youngsters expected to earn enough towards uni living with such low pay and zero hours contracts? Why are the unions and the government perpetuating this ageist state of affairs and not supporting fair pay for all regardless?
The next time you shop ...ask the shop assistant how much an hour they earn...and what it costs them to get to work.I think you will be as shocked as I am!

McDonalds etc. to pay NMW to under 21s, the rate is lower for this age group.

zagfles

Help_i_am_a_Mum_of_four wrote: »

.....how can universities justify such a huge leap in accommodation charges. Two kids at uni , each borrowed £4,500 max allowance for accommodation at uni that's over £5,000 a year....how are they expected to eat without our help. I have another two rethinking going to uni now because they see how the other two struggle.

I had a look at the HoR I lived in at uni in the 80's. I paid £15pw, now exactly the same halls are £88pw. These were non-catered and as far as I can see they're exactly the same as they were while I was there.

Looking at the RPI tables, inflation would make the £15 I paid about £43pw today. So prices have doubled in real terms.

kate1967

RE....It's not the fact that you and your OH work full time that gives her less money, it's what you earn. According to the student finance calculator a student would get £3.5k maintenance loan if their parents earned £70k. On a £70k income, I find it difficult to believe that helping her out a little is a problem for you.

Myself and hubby earn just under 60k between us but our mortgage is £1,248 per month and after food and bills we are really struggling. My Son's self catered accommodation ( cheapest one) falls short of about £500, so we are having to pay that and also send him money for food. We have 3 other children at home.
So it's not difficult to believe that helping out is a problem for some parents.

Florasaurus

I'm sorry, but I disagree... I manage to run a flat living on my own, and a car which breaks down alllllll the time, with some money left over for savings and a little treat each month WITHOUT any help from my parents.

The problem is:
a) students don't budget
b) they spend an average of £40 on a night out, some weekly

CH27

gadgetmind wrote: »

BTW, £14k is about right for a placement, but we only do there for under graduates. We then offer to sponsor them during their final year(s) with the proviso that they pay us back if they don't then come back to work for us for at least (from memory) three years. The end result is that we get good placement students and this feeds into us getting a better flow of graduates.

Can I ask what subject you want your undergrads to be studying?

RosieJD

I totally agree with emmilou, we have similar situation, my daughter is at Liverpool studying vet medicine. My husband and I both work and pay our taxes via PAYE. We still have a mortgage and another dependant. Her contact time is 38 hours and holidays have to be worked in. Her accommodation is nearly £1500 more than her loan therefore I am having to pay the difference plus living costs. We do not have wealthy grandparents to help as some of our friends OR a friendly accountant who can manipulate the finances. (One friend has full grant and full loan due to accountancy shenanigans)
My husband and I have only one solution which is to separate and after 30 years together this wasn't the plan, but the financial pressure may prove too much unless he maintenance loan is brought up to the same level.