Did you retire early before kids went to Uni? How expensive was it?

ratechaser

Newnoel said:

I was educated in the Irish University system, where most students graduate with no debt - due partly to lower fees, but also due to the fact that most or all Uni students work in the US or Germany during the long Summer months and also take up a part time job during the year to make Uni fees. 
 
It amazes me in the UK that so many students want to have it both ways: Cut the apron ties from Mummy - but want their parents to pick up the bill.

Well the flip side is that when I went to Uni, my fees were fully paid and I got a maintenance grant. That plus my (really rather lucrative) p/t job meant that I was able to live quite comfortably.

So my thinking is that assuming they are going to study, and not just use Uni as a 3 year doss opportunity (which I never did, no no no no no...  ) then I'm happy to fund it so they are on roughly equivalent terms to how I managed all those years ago. 

Yes I'm fortunate that I'm in a position to do this for them, but it feels like the right thing - still want them to do some sort of job as well, mustn't be too comfortable for them!

Problem is, setting that sort of precedent then leads onto housing, as they know I was able to pick up a very very cheap 3 bed repo for cash back in the 90s using money my parents gave me. Possibly may have to draw a line there!

pensionpawn

pensionpawn said:

SouthCoastBoy said:

Yes times have definitely changed. Student accommodation is nothing like I had in the 80s. We had no heating, holes in the ceiling and terrible shabby furniture, but it was only about £18 a week. Left uni with zero debt. I think it was the golden era. 

Me and my wife met at university in the 1980's and I remember each and every place we stayed in and wouldn't want my daughter to have to stay in anything like that. However it was a good life experience / education on top of the academic studies. I joined a company at the start of my thin sandwich degree and studied Oct - March and then worked April to Sep for three years with the final (fourth) year all at uni. I was paid during the summer, received a bursary in the winter (as well as my tax rebate) and managed to not only have a great time but also save enough for a deposit on our first house shortly after graduating. My parents hardly paid a penny and I've certainly repaid my grant through 30+ years of income tax. It's a shame that sandwich degrees fell out of favour as I believe they generate a much more rounded graduate / young adult that a vanilla degree.

Just to add that my bursary came from my company starting at around £60 / m in my first year rising to around £120 / m (? it was a while ago) in my final year. My company ensured that after graduating (electrical & electronic engineering, and there were quite a few of us at my company studying at different universities) we had time to find a role which interested us. Such a far cry from what we have now where after three year a young adult has significant debt and can end up in a casual job (as opposed to starting a career related to their degree) with little prospect of repaying the tax payers investment.

zagfles

Newnoel said:

I was educated in the Irish University system, where most students graduate with no debt - due partly to lower fees, but also due to the fact that most or all Uni students work in the US or Germany during the long Summer months and also take up a part time job during the year to make Uni fees. 
 
It amazes me in the UK that so many students want to have it both ways: Cut the apron ties from Mummy - but want their parents to pick up the bill.

That's because the student loans system is based on parental income, unless the student is over 25 or alienated from their parents.

zagfles

michaels said:

A quick google seems to show that there is considerable money to be made for your kids from bursaries if already in retirement and living off isas rather than drawdown - thus saving them from loans/saving you from parental top ups. - Basic bursary is often 2.5k - for us 2.5k x 3 kids x 3 years is 22.5k potentially just from taking assets from one pot rather than another.  Cut off is generally 16k household income so some pension withdrawal to use up personal allowance is still supported.

Cut off is usually a lot higher than £16k. £30k is more usual, some around £42k. Others are banded but most I've seen give the highest band at £25k

zagfles

AlanP_2 said:

zagfles said:

Our kids managed perfectly OK on the equivalent of the full maintenance loan, around £9k a year, which they got through reduced loans, scolarships and bursaries. They both worked a small amount but ended up saving their earnings - didn't need it for living costs. We gave them nothing, IMO it's far better to help them financially when they're buying their first house than while at uni.

Accomodation is expensive but doesn't have to be anywhere near as expensive as some of the examples in this thread, unless they insist on a studio, en-suite, meals etc. It's usually cheaper off campus, but for the first year on campus is usually advised.

Our 3 all went for relatively cheap halls accomodation in the first year. The eldest had finished by the time the 2nd one went and they followed his lead and advice. Private room with shared lounge, kitchen and bathroom, no wasting money on En-Suites (as he said I haven't got one at home so why pay for one at Uni?). Mind you he has moved to Yorkshire now and is giving them lessons in frugality.

That way they got to meet other students whilst they all had friends who went self-contained with en-suites and saw a lot less of the other students as a result. OK, they didn't necessarily like or get on with everyone in their unit but all 3 are still close friends with a couple of the people they were with.

Yes, IME it's mainly the people you live with you become close friends with, rather than those you study with. I'm still in contact with those I lived with but not those on my course.

Another thing to look out for with student accomodation, and we saw a lot when going round with our kids, is most are great with nice rooms, kitchen/dining areas, but most don't seem to have comfy living areas, just kitchen chairs & tables. Even the really expensive accomodation seemed to lack sofas, TV area etc.

pete1975

interesting thread and my eldest is due to got to uni and im in panic mode as ive been trying to pay more into my pension, my wife doesnt work, i was never clever enough for for degree, my wife has done one and had a student loan but im starting to worry now how im gong to afford.  I have another 2 daughters of 16 and 14 that also want to go to uni

Croeso69

pete1975 said:

interesting thread and my eldest is due to got to uni and im in panic mode as ive been trying to pay more into my pension, my wife doesnt work, i was never clever enough for for degree, my wife has done one and had a student loan but im starting to worry now how im gong to afford.  I have another 2 daughters of 16 and 14 that also want to go to uni

Pay enough into your pension to bring your net (of pension contributions, not tax) down to about £25,000 so they qualify for the maximum loan. Obviously not everyone can afford to do this as it isnt much of an income for a family to live on, even though many live on a lot less.

SouthCoastBoy

Pete1975 depending on salary, definitely look at unis with bursaries also have a look at accommodation costs for years 2 and beyond as that can have a big influence on affordability.  It's not easy and neither is it particularly fair especially if you have more than 1 child at uni simultaneously. Just because a family earns more it doesn't mean they can afford it as can have bigger mortgages etc.
I have never understood why only assessed on parental income where the child resides. You could have a parent who earns 1m a year but doesn't live with child and they could get a full loan

pensionpawn

pete1975 said:

interesting thread and my eldest is due to got to uni and im in panic mode as ive been trying to pay more into my pension, my wife doesnt work, i was never clever enough for for degree, my wife has done one and had a student loan but im starting to worry now how im gong to afford.  I have another 2 daughters of 16 and 14 that also want to go to uni

You don't need to go to university to have a successful career. Before Blair corrupted education university only offered undergraduate courses that were essential for certain careers: science, engineering, medicine etc or provided research facilities to learn more about the world around us. Universities now make money by offering degrees in areas that was previously 'on the job' training.
My eldest two have good A levels including maths and science and started careers at 18 and own their own homes at 23. My advice to my children, and my students, is to know what career you want and then identify the education required to achieve it. Not the other way around.

pensionpawn

Here's a good idea. Create your own university to educate young adults for careers in fields where there are a shortage of skills and expertise.

"Our Undergraduate Engineers work alongside the Dyson Technology Global Engineering team from day one. They contribute to live projects, while studying for their BEng (Hons) Engineering degree apprenticeship.

With a competitive salary and no tuition fees to pay, they can graduate debt-free."

I don't work for Dyson however if you want an debt free education, with a job once you graduate then here's an opportunity!

https://www.dysoninstitute.com/