student loan for living costs or would it be better for parent to pay

Dfahmy

I will be in the fortunate position of being able to pay my daughters living costs at Uni - but not her fees so she will need a loan for that.  She will be studying something unlikely to see a high income in the future (although who knows).  Would we better keeping the living costs as cash for her in the future, and she accrues a living cost loan on top of her fees loan, or paying her living costs and she just has the fees loan ?  I'm woprried about saddling her with debt which I could stump up some of at the outset - on the other hand I'm unlikley to have the sum I have now to contribute to costs post uni.

canaldumidi

This is the housing board. Try posting on Loans here.

McKneff

Just my take on it but if her eventual job is not going to be a high earning one she is inlikely to ever have to pay any loan back . 
I can't remember what the amount  of earnings are  before it triggers a payment 

kingstreet

Currently 9% of excess over £25k pa but the Government is trying to get this limit reduced so payments would start earlier. Our daughter is taking tuition and maintenance loans and we're paying her £100 a month plus the £6,500 pa accommodation costs.

dimbo61

Some parents are happy to assist with living/tution costs while others. Are not.
When a student completes the University application forms they ask for household income and patents are supposed to help with University costs.
The new student loans have a much higher interest rate 

london21

Hers would be plan 2. As of today would have to earn gross of £27,288 before she starts paying it back. Interest rate is currently 4.1%.

If she would not be earning up to the threshold then no deductions will be taken from income.

If income will be high better to take the minimum that would be required.

Mine was on the plan 1 with a more favourable interest rate hence took my time paying it off, graduated in 2011 and have £3711 left.

boxer234

As someone who worked three jobs to put myself through uni I can tell you the loans don’t really cover living costs unless she’s living at home.  So you may need to top up anyway.  I would seriously consider whether it is worth doing if future earnings are unlikely to be increased.  

lookstraightahead

You need to equip yourself with how student loans are paid back. You will see that it's after a certain threshold. My daughter has four years of fees and living expenses to 'repay' - it's just a bit more on her tax.

Use the money to help with rental deposit etc when she gets a job and lived independently.

we paid the rental deposit, and first months rent so that she's a month ahead all the time. We said it was a loan but we're in no rush to see it back. Or you could use it for a car / mortgage deposit etc.

dimbo61

It's £9,000+ for the University fees each year and anything from £5/7,000 to pay for University accomodation.
On top of that they need money for living expenses so if you can cover the rent each month that gives them the student loan ( paid in 3 installments ) to live on 

SiliconChip

canaldumidi said:

This is the housing board. Try posting on Loans here.

Rather than the general loan board I would suggest trying the Student Money Saving board where people who have the best understanding of student loans (which are entirely different to any other sort of loan) tend to post. For what it's worth, which may be nothing given that I went to university when they gave out maintenance grants and there were no course fees, I'd agree with @McKneff that there's a good chance that the full loan will never be repaid anyway.