MSE News: PM to launch wide-ranging review of... 19 February 2018 at 12:14PM in Loans 3 replies 1.8K views

Former_MSE_Callum

The Prime Minister Theresa May will pledge to make student finance "fairer" as she launches a major review of university funding later today...

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'PM to launch wide-ranging review of student finance'

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Al_Lord

We still have situations (as per MSE!!!8217;s calculator) where students can pay over £100k and still not pay off their debt. We need to make sure when commentators (and that includes you Martin) start being honest with our future generations that they can still be !!!8220;contributing!!!8221; nearly twice what they borrowed and will still fall into the group not repaying their debt.

Mrs_Arcanum

Unless the government address the assumptions about parental income and affordability, nothing will improve. Students will continue to struggle affording to eat and privately rented accommodation will not be properly heated. The current parental means testing is not fit for purpose.

The maintenance loan for children from poorer families will be plenty for some areas and more of a struggle in others. Whist those from assumed better off families cannot always expect their parents can afford to help out.

With most parents paying 10% or so towards their pensions, then taxed on the remainder, the available support for their children at university is just not there, even with no other children to support. Only allowing just over £1,000 for each additional child still at home, when we all know how much children cost to raise, is bizarre.

Then to add insult to injury, the students most able to access University help are from the poorest families. Where those who need help most are from middle income households.

Nebulous2

Mrs_Arcanum wrote: »

Unless the government address the assumptions about parental income and affordability, nothing will improve. Students will continue to struggle affording to eat and privately rented accommodation will not be properly heated. The current parental means testing is not fit for purpose.

The maintenance loan for children from poorer families will be plenty for some areas and more of a struggle in others. Whist those from assumed better off families cannot always expect their parents can afford to help out.

With most parents paying 10% or so towards their pensions, then taxed on the remainder, the available support for their children at university is just not there, even with no other children to support. Only allowing just over £1,000 for each additional child still at home, when we all know how much children cost to raise, is bizarre.

Then to add insult to injury, the students most able to access University help are from the poorest families. Where those who need help most are from middle income households.

Means testing based on income may be a fairly blunt instrument, but you have 18 years at least to prepare for your child going to university.

If people can't afford it that is mainly because of lifestyle choices. For example, it's a choice to spend 10% on a pension, whilst your child cannot afford heating or food.

I rarely hear people talk about student finance, but I was at a birthday party a couple of years ago where two people who weren't particularly rich were describing steps they had taken to ensure their children didn't need to take a loan at all. That was possible for them on a middle-class income, not just supplementing a loan, because they had begun saving for it from the point their children were born.