Weekly/Monthly budget for University

[Guest55]

I really don't see why every child has to have their own car ... just saying.

[doodles]

Why do you always have to have the last word? .......... Just saying

[Guest55]

Perhaps I see the irony of people posting recipes to save money and then spending thousands on cars that sit idle for six months.

There are taxis, community car schemes and loads of ways to avoid buying a car. Even people that live in remote areas can set up schemes to avoid car ownership.

[Tinkers]

Enough about the pros and cons of student car ownership, and back to the main topic of general budgeting please.

[copella]

Like others my DS gets the basic loan. We pay his rent and then he budgets. He now works in a supermarket two evenings a week for additional income. He knows we are not going to sub him, so needs to work if he wants additional luxuries.

When you say the basic loan, do you mean the £9 oddk for tuition and the £8700 for maintenance, and then you additionally pay the rent on top? This is not having a go - genuinely I am interested - ditto Amber, I think you said you pay rent on top? - trying to work out if most students are getting £8700 per annum plus say £500 a month rent (average) which is about another £6k on top of that?! That is huge!!! Not sure how we will manage all that at all....Or, when you say the minimum maintenance loan do you mean they got LESS than £8700 per year?

My son gets the 9.5k tuition fee and a loan of just under 4K for maintenance. The 8k plus is the max, he is not eligible for that, hence he has to work in a supermarket twice a week and we pay his rent. You need to look into what your child might get. Unfortunately it isn't made clear that the whole system is subsidised by bank of mum and dad.

[MSD]

My son gets the 9.5k tuition fee and a loan of just under 4K for maintenance. The 8k plus is the max, he is not eligible for that, hence he has to work in a supermarket twice a week and we pay his rent. You need to look into what your child might get. Unfortunately it isn't made clear that the whole system is subsidised by bank of mum and dad.

That’s a hefty loan. We are still to go through this process with our two boys, but reading through the posts it appears a 6 year course with parents paying for rent could essentially cost a student close to 90k. And if we add the commutative interest, 6% as an example, that would add another 50k on top of 90, if the student starts paying after 7 years as an example. Lot of money for them to pay even before they start earning - as good as taking on a mortgage. Just out of interest - is the interest accrued from the time student takes out the loan or when they are in a position to pay it back?

[Tinkers]

I’d suggest you have a read of this.

https://www.moneysavingexpert.com/stude ... s-changes/" onclick="window.open(this.href);return false;

Also on the same site.


https://www.moneysavingexpert.com/students-family/" onclick="window.open(this.href);return false;

Which might be useful to you and your DCs.

[hermanmunster]

My son gets the 9.5k tuition fee and a loan of just under 4K for maintenance. The 8k plus is the max, he is not eligible for that, hence he has to work in a supermarket twice a week and we pay his rent. You need to look into what your child might get. Unfortunately it isn't made clear that the whole system is subsidised by bank of mum and dad.

That’s a hefty loan. We are still to go through this process with our two boys, but reading through the posts it appears a 6 year course with parents paying for rent could essentially cost a student close to 90k. And if we add the commutative interest, 6% as an example, that would add another 50k on top of 90, if the student starts paying after 7 years as an example. Lot of money for them to pay even before they start earning - as good as taking on a mortgage. Just out of interest - is the interest accrued from the time student takes out the loan or when they are in a position to pay it back?

the total amount of the loan makes no difference to the annual amount paid back. If they have borrowed 90k then when they earn over a certain amount they pay 9% of their pay above that amount (not of the loan), after 30 years it is written off. if they borrow 900k, they still only pay back 9% of their pay. Most will never pay back their loans, it is essentially a tax not a repayment.

X-posted with Tinkers - links in post above explain it all !

[timothylewin]

We're paying for both tuition and living expenses at leats for 3 years if not the full sichs if DS transfers to another course. Doing the maths, w'll be saving shed loads of interest in paying all upfront. Monthly allowance for living/food/travel/books/nites out amounts to a stipend of around £400pm. We do not want him to do any winter or summer jobs either, he has his whole life ahead for that jargon. Hope this helps the more open minded members of this forum.

[MSD]

Ah, understood! Thank you Herman and Tinkers