The “child going to university” subject is a very broad topic. There are many different aspects that relate to it and you can read about many in the following article, but there are some that need to be explained to be included in this blog: The student loan system is a government run financial system that has been in place since 1998. If the student loan system was looked at as a business in itself, it would be found that it has made a loss every year and in the last few years the overall debt has gone up. The UK government has now introduced a system that will see the interest rates on the student loan system go up in April 2010. The system will work in the following way: As part of the government’s policy

One of today’s biggest issues in education is student finance. Student finance is something we all have to deal with, whether we want to or not, when sending our children to university.  In this article we outline exactly what student finance is, and what you need to know before sending your child off to university.  Student finance plays a huge part in your child’s life, with the decisions you make today having a direct impact on the life of your child in the future.

Written for parents of a child who is going to university, this guide to student finance covers the basics of paying university fees, what to expect from living away from home, and how to decide what level of support your child may need. It is written by Michael Harris, a former president of the National Union of Students, who has given talks at education conferences and is best known for his blog,

Pink piggy bank on top notebooks - Student loans

Despite student loans, parents are expected to financially assist their children throughout their university years. (Photo courtesy of Getty Images)

With the release of the A-level results, hundreds of thousands of families will embark on a three-year or longer financial balancing act to ensure that their grown-up children have the greatest possible start in life.

Despite popular belief that the expense of a university education falls solely on the shoulders of the student – in the form of student debt – the reality is that parents are expected to financially assist their children throughout their university careers and must budget appropriately.

‘Student loans are determined depending on family income,’ Laura Brown, Save The Student’s editor, says. ‘In general, the more money a parent earns, the less money a student gets.’

According to the website’s most recent poll, the typical student got £131 per month in debt repayments from parents, with many receiving much more.

According to new data from NatWest, the average student rent has increased by 20% in the last year, meaning parents will have to contribute even more to assist their children make ends meet.

According to Andy Nicholson, head of NatWest student accounts, one in four students runs out of money every month. ‘Increasing student rentals puts even greater financial strain on students,’ he adds.

While much has been written about how students may save money while at university, here are some tips for parents on how to prepare for three years of potentially unexpected financial school expenses.

Recognize the system

The student-financing mechanism, as well as how the anticipated money from parents is calculated, is not simple to grasp.

Tuition fees for attending university and living expenses while there are two kinds of expenditures that university students must pay.

Parents are required to pay to their children’s living expenses, but not to their tuition fees, which are intended to be paid by the tuition fee loan, which is accessible to all parents regardless of income.

A student’s maintenance loan, which covers living expenses, is, however, contingent on parental income. When studying away from home in London, the most amount a student may get is £12,382, whereas outside of London, the maximum amount is £9,488.

If the parents’ income is high, this may decrease dramatically. If parental income is £100,000 per year, a student living away from home and studying in London will only get £6,166 in maintenance loans for the year.

If the parents earn £50,000, they will get £8,929, and if they earn £30,000, they would receive £11,692. The government’s calculator ( may help you figure out how much your kid will get and, as a result, what your contribution will be.

‘Even if you receive full support, it seldom covers everything for the typical student,’ cautions Claire Hattrick, who runs the parenting site and recently had twin daughters go through the university finance process at the same time.

female teenager feeling stressed studing at home.

Learn all there is to know about your child’s debts. (Photo courtesy of Getty Images)

Calculate how much you’ll likely contribute.

Once you’ve determined how much your child might get as a loan, you’ll need to determine how far it will extend. The University and Colleges Admissions Service, or UCAS, offers a widget on its website that shows how much it costs to attend university in different parts of the nation.

Entering your child’s desired or confirmed school should give you a clearer sense of the loan’s deficit and, as a result, what you, as a parent, may need to pay.

Because of Covid, according to Jeremy Walker, director of Cambria Wealth Management, students will be less likely to have a personal savings account to cope with expenses that surpass the amount of their loans.

‘Traditionally, many students would have had part-time jobs during the summer to save money while living at home,’ he adds. ‘However, since many of these temporary employment are in the hotel sector, the September 2021 returning students will have much less of a cushion to fall back on than prior years.’

As a parent, you might urge your kid to apply for scholarships or bursaries to help them become less reliant on you.

Some scholarships and bursaries are only accessible to residents of certain areas of the nation or to the children of professionals in specific fields, so you may be surprised by what is available, particularly from tiny grant-making foundations.

Website Scholarship Hub offers limitless free scholarship searches, whereas Turn2Us provides a site where you may look for donations from charity organizations.

Most public libraries also include The Directory for Social Change’s book The Guide To Educational Grants, which has additional information on possible money for your kid to apply for.

More: Finances

Have a financial discussion.

With parents covering so much of a student’s university living expenses, communication and clear expectations are essential before the semester even begins.

It’s important that you speak to your kid about how much of a donation you can make and what they should do if they run out of money.

Assuring that they are aware of the risks of high-cost debt, such as student credit cards, would hopefully prevent them from accruing large interest charges, while assisting them in selecting a student account with an interest-free overdraft will provide them with a safety net if things go wrong.

Student credit cards are typically more costly than other kinds of cards, according to Danny Cox of investing firm Hargreaves Lansdown, since students do not have a credit history.

‘You’ll have to pay back these loans while attempting to get back on your feet financially, so it’s important taking the time to understand what you’re getting yourself into before diving in,’ he adds.

‘I was shocked by how much parents are asked to spend,’ says one parent.

Lauren Rosenberg is preparing for her third of five children to attend university, so she understands the financial burden on parents.

‘I was taken aback by the amount parents had to pay,’ she adds. ‘You have to apply for the grant, and then your parents have to top it up, which adds up, particularly with rent.’

 Lauren Rosenberg

Staying at home, according to Lauren, is a good way for students to save money (Picture: Lauren Rosenberg)

The economical benefits of learning from home are appealing to the fear and phobia specialist. Despite the fact that Lauren’s family lives in London, one of her elder daughters just graduated from Leeds University and commuted for her last year.

Lauren says she pushed her younger daughter, who wants to study nursing, to apply exclusively in London, partially because of concerns of further coronavirus lockdowns, but also because of the cost.

Lauren explains, ‘She’s going to remain at home and commute every day, which means she won’t have to pay rent.’

‘I mean, it would have been great for her to travel abroad and have the experience.’ But there’s also the expense of needing to purchase everything since I’ve seen what happened to my second kid. We had to go out and purchase all the bed linens, duvets, silverware, crockery, and other necessities, so she’ll be staying here.’

If everything goes wrong,

If your child runs out of money sooner than anticipated in the term, you must decide as a parent whether you are willing (or able) to keep topping them up or if you are willing (or able) to subject them to an unpleasant few weeks.

Every institution, according to Jon Dale of the University of Sussex, offers money advisors who can assist your student son or daughter get back on track with their finances.

‘Make contact and see what assistance they can provide if you believe your finances are sliding out of your grasp,’ he tells pupils.

further information: Metro newspaper

Should you start investing now so that your kid graduates debt-free?

If you’re a parent of a younger kid reading this post right now, being proactive about saving for university may help you avoid problems down the road.

According to Fidelity, investing £180 a month in a tax-free Junior ISA from the time a child is born could result in a fund worth £55,000, enough to cover university expenses.

A monthly saving of £100 could yield returns of £30,874 – more than three years’ worth of tuition fees – for individuals with less to invest.

Junior Isas (or Jisas) are given to children when they turn 18, so they may use the money to pay for university expenses and, in certain instances, graduate debt-free.

However, according to Myron Jobson, a personal finance campaigner at investing platform Interactive Investor, although the notion of your kid graduating from university debt-free is appealing, the particular nature of student debt means that this is not necessarily the best option.

‘If you’ve been fortunate enough to build a sizable stocks and shares Junior Isa pot, it may help you pay off a significant portion of your school debt. It’s far more challenging and personal whether you utilize it for university,’ he adds.

Student loan interest rates may be expensive (currently 5.6%), but repayment begins once you earn just over £27,000, and the debt is forgiven after 30 years.

‘Only around a quarter of current full-time students who take out loans are expected to repay them in full,’ Myron adds.

‘While paying for education yourself is a noble goal, it is not always the most financially prudent course of action, since many graduates will not be required to return the whole debt.

‘On the other hand, student loan interest rates may be exorbitant, so there are no simple solutions.’

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MORE: These are the five most affordable university cities in the United States.

MORE: Results Day 2021: How to Find Last-Minute Student Housing

MORE : Results Day 2021: Don’t want to go to university? Here are some options to consider.

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There are many things that go into budgeting for a child going to university. If you are able to, try to support them with the money they already have – this can help ensure they have enough to cover their costs, and will be able to make their own place as part of their living expenses. If you do decide that they need money from you, the best way to approach this is to be honest with your child. If you are worried that they might say “but I can’t afford it”, just point out that you are willing to provide them with some of the money they might use for that, but that you want them to still be able to make their own way.. Read more about how much should i give my child at university 2020 and let us know what you think.

This article broadly covered the following related topics:

  • student finance household income table
  • student finance parents income
  • student finance do you live with your parents question
  • single parent with child going to university
  • student finance england
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