Weekly/Monthly budget for University

Discussion and advice on University Education

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hermanmunster
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Re: Weekly/Monthly budget for University

Post by hermanmunster »

timothylewin wrote: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.
How will you be saving money by paying upfront? As explained above, the likelihood of people paying it back is low. Consider also the possibility that a future government decides to change this formally to a tax on graduates instead of a "loan", those who have paid in advance will pay twice
KB
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Re: Weekly/Monthly budget for University

Post by KB »

+1
Do look at what Martin Lewis has to say on this.
Its very different to a normal loan.
The interest rates are very high but unless your DC is going to be a high earner they will never pay it back.
If they are earning enough to pay it back then they wont be short of cash!
You could be much better using the money to help them with a house deposit for example.
Guest55
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Re: Weekly/Monthly budget for University

Post by Guest55 »

Just a warning that the terms can change at any time ... there is NO guarantee that the 9% will stay at that. Those thinking about medicine will be clobbered ... as will those thinking about other high earning careers.
Tinkers
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Re: Weekly/Monthly budget for University

Post by Tinkers »

KB wrote:+1
Do look at what Martin Lewis has to say on this.
Its very different to a normal loan.
The interest rates are very high but unless your DC is going to be a high earner they will never pay it back.
If they are earning enough to pay it back then they wont be short of cash!
You could be much better using the money to help them with a house deposit for example.

As ML says, it’s better to see it as a graduate contribution rather than a loan. In DDs case, given the subject she wants to do, I suspect it’s unlikely she will ever be a high earner. It’s likely she with ever pay back much, if any, of it back. I’d rather save the money (in a place getting close to 10% at the moment) and use that money to help her get in the housing ladder later if she needs it.
Tinkers
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Location: Reading

Re: Weekly/Monthly budget for University

Post by Tinkers »

Guest55 wrote:Just a warning that the terms can change at any time ... there is NO guarantee that the 9% will stay at that. Those thinking about medicine will be clobbered ... as will those thinking about other high earning careers.
ML mentions this in his last point in the guide.
Guest55
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Re: Weekly/Monthly budget for University

Post by Guest55 »

Some may not read that far ... a graduate tax would only apply to people who used SFE. If you'd paid everything upfront SFE would not have you on their books.
It's a judgement call with no right answer for every family.
hermanmunster
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Re: Weekly/Monthly budget for University

Post by hermanmunster »

Guest55 wrote:Some may not read that far ... a graduate tax would only apply to people who used SFE. If you'd paid everything upfront SFE would not have you on their books.
It's a judgement call with no right answer for every family.
Don't think SFE would exist at that time - suspect would be a case of having to declare your degree / uni time on HMRC forms, if you are in a job requiring a degree it would be hard to hide it.
Guest55
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Re: Weekly/Monthly budget for University

Post by Guest55 »

I have a degree but there were grants in my day - there would be uproar if a 'blanket' tax was introduced on all graduates. It just isn't going to happen.
Many people do jobs where they don't 'need' a degree but have one; there would be no way of differentiating them.
I can see that SFE might pass on records in future from a given date as the current 'system' is unsustainable.
hermanmunster
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Re: Weekly/Monthly budget for University

Post by hermanmunster »

Guest55 wrote:I have a degree but there were grants in my day - there would be uproar if a 'blanket' tax was introduced on all graduates. It just isn't going to happen.
Many people do jobs where they don't 'need' a degree but have one; there would be no way of differentiating them.
I can see that SFE might pass on records in future from a given date as the current 'system' is unsustainable.
maybe those of us who have degrees when we got grants will also be expected to pay - not saying it would happen but who knows :roll:
Guest55
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Re: Weekly/Monthly budget for University

Post by Guest55 »

Really? So they'd chase 80+ year old pensioners - that would go down well.
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