University Fees

jackieblack

FBaby wrote: »

But it is still a loan and will still need to be repaid. Ideally, I would prefer to help my kids avoid taking this loan so that when they do start their career, they will be able to save up to get into the property ladder at some point.

But not a loan in the same sense as a car loan or a mortgage.
They are going to be deducted £7.50 a month from their salary for every £1000 above £21000pa that they earn.
For someone earning £22000pa that reduces their take home pay from about £1481.50 to £1474 a month.
For someone earning £30000pa that reduces their take home pay from about £1935 to £1867.50 a month.


Have you read Martin's 'Beware Paying Uni Fees Upfront' article?
http://www.moneysavingexpert.com/students/should-i-get-student-loan

"£9,000-a-year tuition fees send chills down many parents' spines. Some are desperate to build uni funds to protect kids from huge debts on graduation. But this laudable aim could be throwing away over £20,000."

Person_one

FBaby wrote: »

A long list as far as my kids are concerns. I don't know about others' kids.

Your children aren't even secondary age, are they? Is this set in stone already?

FBaby

For how long though? A loan is still a loan, especially if added to any loans required for maintenance, then to get a deposit, to furnish new place etc... Saying that, I do agree as said above that it might very well be a better move to invest any savings differently. I still have 5 years to go before my eldest go so plenty of time to do the Maths.

FBaby

Person_one wrote: »

Your children aren't even secondary age, are they? Is this set in stone already?

One is, the other soon to follow. Of course it is not set in stone, as I've written, but their current academic results are giving a pretty good indication that they are quite likely to go.

princeofpounds

Back to the OP, as things have become somewhat diverted...

No, you are not necessarily being selfish.

For example, it does little good to support a student son if that means you cannot support yourself in older life and need to rely on them.

They may not have access to the money you are saving in house equity now, but presumably they will when they inherit. Ultimately there is little difference if they receive the money now or later except for inheritance tax and something else I outline below.

Of course if you were spending half the money on Chablis and giving the rest to the RSPCA as a bequest, then yes that may be selfish.

Having said that, I suggest you become familiar with how their budget works out. As already stated several times, forget grants and zero fees. Now you have to pay fees (from loans) and the other support loans you get come nowhere near even the most frugal of living costs.

I would suggest that a very basic level of support and/or a willingness to provide extra support during crisis periods may be necessary to avoid stress and distraction from studies.

Money is more valuable when it is most needed, remember that. Inheriting a house when you have a solid career is a luxury. Being able to heat your nasty little rented room as a student is not.

Person_one

FBaby wrote: »

One is, the other soon to follow. Of course it is not set in stone, as I've written, but their current academic results are giving a pretty good indication that they are quite likely to go.

I just hope there's a bit of flexibility. I've known a few young people over the years who've had to face opposition from their parents when pursuing the degrees/careers they wanted. Its really rough on them, and not just financially.

onlyroz

I think that rather than paying uni fees it would be better to help out with living expenses and then save to help your kids with a house deposit. It is better to consider student "loans" as a graduate tax - and in most cases it will never have to be fully repaid.

duchy

chirpchirp wrote: »

I was talking with a friend last night who is financially sound ie has been able to pay off her mortgage many years ago and send her sons to a private school for their primary years. We were discussing a family issue regarding potential inheritance and she stated they could do with the money to fund their kids through uni.

So perhaps if she had made other choices... she'd have savings for the university years. She made the decision to prioritise differently ....and frankly with no mortgage to pay I have to wonder why she's struggling to fund the kids through uni. I suspect her version of "not enough money" is possibly not the same as some others definition.

Of course if she doesn't want to wait for an inheritance there is nothing to stop her remortgaging.

FBaby

Person_one wrote: »

I just hope there's a bit of flexibility. I've known a few young people over the years who've had to face opposition from their parents when pursuing the degrees/careers they wanted. Its really rough on them, and not just financially.

Might be, but if you read properly what I wrote, I didn't say I would stop them, I said I would not pay for it. I would still provide support when needed, still opened my door to them, just not pay for their studies. They would be free to take the route of the loans mentioned above.

jackfrost95

im hoping to make a contribution to my sons living expenses when he goes to uni next year...but it all hinges on what the government will
lend him. I am new to this, so excuse my ignorance, according to MSE there is a maintenance loan up to a combined income of 60K. What happens to anyone with income 60k plus...do you just get awarded the minimum amount and are expected to make up any shortfall.


cheers

jackfrost95