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 Post subject: How much does it cost?
PostPosted: Wed Apr 04, 2012 7:23 pm 
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Joined: Sat Nov 17, 2007 8:55 pm
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Location: Bexley
Quick, before I stick my head back in the sand. Can anyone give me a rough idea of how much we are going to have to fork out for uni education? DS1 is in year 12, with 2 siblings coming up fast behind him. It seemed like a good idea for DH to take early retirement last year, but now I'm not so sure when I look at the cost of tuition fees! Presumably loans for tuition fees are available to everyone regardless of parental income. I also gather that some level of maintenance grant is available to everyone regardless of parental income? But what amount of money do students need to live on these days?


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PostPosted: Wed Apr 04, 2012 7:27 pm 
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http://www.direct.gov.uk/en/EducationAn ... /index.htm

It's not a very rosy picture. The loans attract interest from day one at 3% above base rate ... students are likely to £50K debts!


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PostPosted: Wed Apr 04, 2012 7:52 pm 
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just been look at catered halls of residence - around £5k /year so rather more than the minimum maintenance loan (lots will only get the minimum).. then travel / books / clothes / phones / entertainment on top.

with a bit of luck will be made redundant and might be able to get a bit more towards the fees / maintenance etc etc


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PostPosted: Wed Apr 04, 2012 10:21 pm 
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Location: Berkshire
I agree with herman, although if you and your husband are retired, your son or daughter may be entitled to grants in place of loans - it depends on your family income. Or you may be entitled to more loans if you declare your income. The relevant blurb for 2012 is here....

http://www.direct.gov.uk/en/EducationAn ... /DG_194804


It does cost more than the amount of the student loan for accommodation these days, halls may cost in the region of £5k, and the maximum loan available to those who choose not to declare family income is £3575, I think from memory.

Cotly business. We have calulated our daughter will owe when she leaves something in the region of £42K. :shock:

Herman - you work for the NHS there is no money to make you redundant for heavens sake :lol:


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PostPosted: Thu Apr 05, 2012 7:21 am 
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Joined: Wed Oct 07, 2009 3:23 pm
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Location: Warwickshire
There has been a lot of coverage about about the loan system and the debt ... but the way it is paid back is really a form of graduate tax. Until you are earning quite a bit you don't pay back much at all. IMHO (and many others) unless you are mega wealthy you/they are mad not to take the full loan. There are reasonable chances they may not end up paying it all back (written off after about 30 yrs) particularly if they end up living abroad, on lowish pay (doesn't kick in til £24k and then only a very small pay back) ... part-time working, extended parent leave etc.
Agree with others that the loans don't cover everything if you don't qualify for extra because of income (actually you may be at an advantage with DH retired as I don't think(?) pension income is looked at). We currently have DC on £250/month all year from us. She is in catered halls this year but we now realise that next year (shared student house in a big city) will work out even more expensive! We have agreed to reassess her allowance only if she presents us with accounts letting us know where the money goes. I am not convinced that we have gone about it the right way but we spoke to others and made a decision based on that and our/her calculations.


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PostPosted: Thu Apr 05, 2012 7:34 am 
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Looking for help wrote:
Herman - you work for the NHS there is no money to make you redundant for heavens sake :lol:



Yep and they want to replace me with a paramedic. Maybe I shall go back to university and get a few more degrees .... can't be expected to pay for DD and DS if I am doing that?? :lol: Trouble is my colleagues are onlu able to fund their kids by working evenings / weekends etc - we all breach the EWTD (11 hours off in 24hr - so when dod parents ever get that????) and now they are forbidding us to do so - i work until 11pm every friday evening but under EWTD can no longer work a saturday morning... duh.

agreed it is just a graduate tax in disguise and is fine if you don't earn much but if you are better off in the job you get you have to think twice about working extra hours / promotion etc.


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PostPosted: Thu Apr 05, 2012 8:06 am 
The way the loan is repaid for an employed person is via the PAYE system. I wonder how the money is repaid if you are self employed or resident overseas? Maybe you have to file tax returns every year and do it that way?


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PostPosted: Thu Apr 05, 2012 9:11 am 
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Since there is now not going to be any penalty on paying it back early, wouldn't it make sense for each individual to come up with their own repayment schedule so that they can pay back more when they can afford it to reduce the overall amount of interest? A bit like a flexible mortgage? You can be sure that - the way the system is set up at the moment - it's designed to screw as much interest as possible out of people. :evil: It's all very well saying you don't pay anything while you are not working, but interest will be accruing on the capital for all of that time. So if you end up in a relatively highly-paid career and are likely to have to pay back the whole amount, doesn't it make sense to pay back what you can when you can and reduce the overall amount of interest ? :?

_________________
Marylou


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PostPosted: Thu Apr 05, 2012 9:14 am 
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My concern is that with a 50K debt that mortgages will be difficult to get. 'They' say that student debt is not taken into account but no-one has had this amount of debt yet so how can they assure us that this will be so?

I do think the system is mad; my DC would be better off if I retired ....


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PostPosted: Thu Apr 05, 2012 9:15 am 
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Location: Warwickshire
At the moment if you are overseas they are not trying to reclaim it ... but apparently they are looking to close this loop - within EU at least. Don't know about self-employed I imagine it will create more accountancy jobs ... how to be creative with your accounts and never make more that £24k/annum!
I see some of this with means-tested bursaries at independent schools ... self-employed e.g. farmers "running at a loss" , children's school fees heavily subsidised yet living a lifestyle that would indicate otherwise. I hasten to add this is probably very much a minority and I do think means-tested bursaries are a good thing. Just illustrating that some will always get away with "it" at the expense of others e.g. PAYE people.


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