MSE News: Student loans are not big enough

RosieJD

Florasaurus wrote: »

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

You don't as how much loan you are getting but I suspect it's more than £3500! Not all students are the same!

RosieJD

Dunroamin wrote: »

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.

There are some very rich students out there, from what my daughter says they are the rich mans 'ghettos'

RosieJD

GeneHunt wrote: »

If parents really are poor there is plenty of money out there for students in the form of maintenance grants, bursaries etc on top of the maximum student loans.

For the rest - well surely we can expect parents to put their hand in their pockets - why does the tax payer have to pay for everything !!!!!!?

A simplistic view, plus I think, if you do some research, it is quite possible for the very rich to have accountants that help them appear poor, or for children of 'divorced' parents have access to more. Helping out a bit is not the same as having to fund a second home from 2 salaries that don't average out as the minimum wage.

RosieJD

sulphate wrote: »

She has a weekend job simply to cover clothes, toiletries and alcohol? Perhaps she needs to budget a bit better?

I definitely feel that student loans should cover food, rent, travel and essentials but partying is not an essential even for a student.

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.

I think you will discover that it's on MUCH less than £70k that the minimum maintenance loan is given and not all students are studying subjects that allow freedom to find a job! Fortunately my daughter had a gap year and saved enough to cover this year!

RosieJD

space.girl wrote: »

I have the minimum loan about £3500 per year. I like to socalise so I chose to get the cheapest halls £65 a week.

If there is a £500 a year shortfall, ask your daughter to put her weekend job money in instead of buying ALCOHOL!!!

I budget well, and sacrafice things. I will never have sympathy for students claiming not to have enough money but still buy alcohol.

Where is your university? Seems odd that a student criticises her fellows for the same behaviour she exhibits!

RosieJD

GeneHunt wrote: »

Why shouldn't they? Nobody made them have kids did they? Why should I support your kids which you chose to have? If you couldn't afford to have them - why did you? Why didn't they save?

Because at 18 they are no longer kids! Would you rather spend your taxes on even more job seeker allowances, or prison places? Educating the people will not only help financial recovery but sustain it!

epm-84

One thing a lot of people overlook is there's big differences between living costs between different places e.g. Middlesbrough is a much cheaper place to live than Brighton but everyone gets the same rate of student loan (except those in London who get a higher rate.) Cheaper living costs reduces the chance of going in to debt and means you can afford to go out more without going broke.

epm-84

GeneHunt wrote: »

Why shouldn't they? Nobody made them have kids did they? Why should I support your kids which you chose to have? If you couldn't afford to have them - why did you? Why didn't they save?

That might be a valid comment for child benefit but it's not a suitable comment when talking about student loans.

Firstly, we are talking about student loans they have to be paid back when the graduate is in full time work.

Secondly, we are talking about adults who are usually 18-22 and financially responsible for themselves. The loan is provided directly to the student not their parents.

CH27

RosieJD wrote: »

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.

Seriously?

bluelou16

emmilou wrote: »

The cost of accommodation does need to be looked at - my daughter gets the minimum amount of maintenance loan (£3.5k p.a) as me and OH both work full time, her accommodation is £99 a week (just over £4k a year) and so we have a £500 shortfall a year.
Therefore we have to make up that difference and give her money for food, she has a weekend job which will cover her other purchases e.g clothes, toiletries, alcohol etc..

It seems at 18 you are considered an independent adult and yet still penalised by having married parents who work, IMO maintenance loans shouldn't really be means tested

I completely agree. My husband and I work and our son will get the same. We were always led to believe that if our children went to University then the loans were there to cover it and it would be their debt - it is only now that we have started looking at Uni's for next year, that the huge shortfall between the money he needs and the money he is entitled to get on a loan, has become apparent. I am now having sleepless nights worrying about how we will manage, especially as we have 2 children with only 2 years between them so we will end up with them both at uni at the same time!