University Maintanance Grant problem for son..

the_tired_one

My son will be starting university next month. It was a very difficult decision as to whether he would go onto study or look for employment because of the finances involved and our low income status.

However we decided to apply on the basis that he would be eligible for the grant to help pay for part of the course. Now that the Govt is abolishing the grant in 2016, our problem is how the hell are we going to afford the minimum £7.5k-£8k for years 2 & 3 without taking out loans etc. And that doesnt take into account the Govt proposal to increase tuition costs from 2017.

Will there be ANY recourse to any forms of grants for uni students who are from very low income families from 2016?

Because my son is now thinking about rejecting the offer & not going to Uni at all as he feels he will be burdening us or getting into debt himself.

Thanks

GothicStirling

The amount given in maintenance loans is going to rise to cover the difference. So unfortunately, your son will end up owing more in SL repayments, but shouldn't need to take out commercial loans.


I'm may be wrong, but is the removal of the grant only effect students who start September 2016? It might be worth asking SFE.

Indie_Kid

GothicStirling wrote: »

I'm may be wrong, but is the removal of the grant only effect students who start September 2016? It might be worth asking SFE.

This is my understanding. Finance for those who started before September 2016 is grants and loans.

the_tired_one

Thanks guys. What is SFE? Apologies for my ignorance in this matter. As you can see, my son doesnt get his brains from me

GwylimT

Where are you getting £7.5-8k figure from?

maginot

SFE is Student Finance England

As mentioned the Grant isn't removed this year, so if eligible should receive funding and even when it is removed, the maintenance loan is increased to offset the loss of grant. So this shouldn't prevent anyone from going to university.

More and more students are also working through their courses to keep their overall debt down, so if possible perhaps they could be looking for work for when they start before every student arrives.

dawyldthing

GothicStirling wrote: »

The amount given in maintenance loans is going to rise to cover the difference. So unfortunately, your son will end up owing more in SL repayments, but shouldn't need to take out commercial loans.


I'm may be wrong, but is the removal of the grant only effect students who start September 2016? It might be worth asking SFE.

This is what happened when I started in 2005 as it was the last year for reduced tuition fees etc. I got the same money all the way through even after i deferred a year it was the same. the other thing is it is no burden to you. You have to write down what you get so it may impact how much they get (unless it's changed) but the loans are there to help to live on, tuition fees etc (the maintaince loan may go but realistically unless they end up on a mega salary not a lot will get paid back) and if it will help him in his career tell them to go for it. It was one of the best things I did.

elisebutt65

Oh for heavens sake, I do wish people would stop thinking about the student loan as real debt!
Think of it as a student tax instead. It doesn't affect your credit score.
I've had my student loan since 2007 and I've barely scratched the surface of it due to working part time while bringing up my kids & I'm due to have it wiped in 15 years due to me hitting 65.
Ive talked to parents who were considering taking out loans to pay for uni, which is possibly the worst thing they could do!
The grant is being changed to a loan which means that the student debt will probably double, but only 47% apparently gets paid off, so I guess the govt thought they'd be better off getting something repaid than just giving free money to students.
Uni's have always offered various bursaries & scholarships as well, so it worth looking into. I got an extra £5000/ year because I was a single parent with only student finance.
Do research on what the uni's offer in return for good grades as well. Some will offer scholarships for excellent grades in a levels or diplomas.

Really, he shouldn't have to get the maintenance loan though as he's starting this year, not next. But get him to apply for the Access to Learning fund straight away. If he's not eligible then he won't get it, but if he is, then he needs to apply immediately as sometimes the pot runs out.

Savvy_Sue

It is also worth him asking the uni what other extra grants there might be, I know the boys could have got extra funding if DH and I hadn't gone to Uni, and one of the Unis involved had grants for those from a particular area, and grants for those from the local area.

But I'm with Elise, and I'd also say to the OP that when you talk about 'we', you need to get out of that and start encouraging your son to make his own decisions (wise or foolish!) and then whatever he decides you back him to the hilt!

InsideInsurance

the_tired_one wrote: »

However we decided to apply on the basis that he would be eligible for the grant to help pay for part of the course

What do you mean pay for the course?

If he is going to Uni to do a degree then the course fees are covered by the Student Loan not the grant. The grant was designed to be used in conjunction with the other half of the Student Loan for living costs.

Why can't he do what most of us had to do and have a job and go to uni? I didnt get a maintenance grant due to my mothers savings/income but in the 4 years of university I got a grand total of £50 from her and typically had 2 part time jobs at the same time as studying. To be honest I think it also helped me get work after finishing uni as I had work experience and not just education on my CV.

pinkshoes

the_tired_one wrote: »

Because my son is now thinking about rejecting the offer & not going to Uni at all as he feels he will be burdening us or getting into debt himself.

Thanks

Why?? Everyone on a degree course has the same access to study resources and an equal chance to get a well paid job and thus pay off their student loan. It doesn't matter whether you came from a poor or wealthy background. You are there to study.

Very very few students are lucky enough to have parents pay off their debt for them, as very few parents can afford such a thing.