Information on university funding for parents
Not a day goes by at the moment when the media does not constantly remind parents of the enormous cost of going to university for their children. Headlines of £50,000 of debt to a parent can sound horrendous at such a young age, especially since that is probably more than your first mortgage.
But what doesn’t get mentioned that often is the cost of tuition for parents. The cost to the parents is somehow shuffled conveniently under the carpet, and parents are expected to swallow these costs. Some parents can’t afford to do this, leaving the students struggling for money daily. They are sometimes forced to take on one or several part-time jobs while studying. This can make the parents feel like they have let their children down by not being able to support them.
So, for anyone wondering about the cost of university for parents, here is our complete guide to what it will cost them and you.
Open Day visits
Let’s start at the beginning—long before they take out their loans. While your son or daughter is making their university choices, they will want to attend university open days. This is an important part of the decision-making process. Visiting the university instead of reading about it online gives you a much better feel for the institution.
However, this does come at a cost…..not for the day itself, but getting there and back, and in some cases, you will require overnight accommodation if it is far from home. Maybe your child has a few preferred choices they can’t decide between. Visit these universities first, planning so you can get the best deals on train fares and accommodation if required and then if they don’t like any of these (unlikely), you can see the others.
The Loans
Next step, the loans.
Applications for Student Finance usually open in February. Most of the concerns about the size of student loans generally come from a lack of understanding about how they actually work, so it is important to ensure that both you and your student understand the loan system. It does not work like a typical loan.
What is available?
1. Tuition fee loan: This loan covers the cost of tuition fees and is available to all UK students. The amount offered varies depending on the course’s cost, but currently, the majority of courses charge a maximum of £9,250 per annum. This money will be paid directly to the university and will never hit your son/daughter’s bank account.
2. Maintenance Loan: covering living expenses, including accommodation, food, travel, entertainment, books and any other costs. It is paid directly into the student’s bank account in three instalments, once per term, and can be used as they see fit. The amount awarded is dependent on the student’s household income. So, the Student Loan Company is deciding whether they think you can afford to supplement your child’s funds based on your household income and does not consider your outgoings.
This is where the system currently falls down. Most maintenance loans barely cover the cost of accommodation, and students will have a shortfall—which you, as their parent, will be expected to make up the difference. Nobody tells you this. It is implied. Of course, there is a choice, and that is why many students now find themselves having to work part-time while they study.
How do the loans work?
The key feature of a student loan, especially on Plan 5 for those starting their degree in England on or after August 1, 2023, is that repayments are based on your future earnings, not your current financial situation. Regardless of how much you borrow, your repayment is determined by your post-graduation income, not the borrowed amount.
Repayments for Plan 5 loans begin once you’ve completed your course and earn above a specific threshold, currently set at £25,000/year before tax. Once your income surpasses this threshold, you start repaying at 9% of the amount exceeding the threshold. For instance, if you earn £30,000/year (£5,000 above the threshold), your annual repayment would be 9% of £5,000, equaling £450. It’s important to note that Plan 5 loans are forgiven 40 years after the repayment start date, which is longer than other plans.
This means that a more significant proportion of students on this plan will likely repay their student loans fully. If the loan is ‘written off’, you are no longer obligated to make repayments, even if the entire borrowed amount hasn’t been paid back.
Check the GOV.UK website for more details.
Let’s talk about interest.
At the time of writing, students are charged 6% interest on their loans, which grabs many headlines because it is higher than current interest rates on most other loans.
This rate varies depending on how much they earn as a graduate and the current Retail Price Index. You have to remember that it doesn’t affect their repayments, which are based on what they earn and not what they borrowed. So even if the interest went up to 15%, they would still be repaying the exact amount and would be even less likely to pay off the loan amount in 30 years.
Applying for Student Finance – what they want from the parents
As the maintenance loan entitlement is based on parental income, when your child applies for student finance, you must provide proof of your household (yours and your partner’s or spouse’s) income. This could be in the form of:
• P60
• Payslips
• Tax return
• Bank statements
Once your child has applied for Student Finance, you will get an email within 24 hours with a link to submit your information.
You will need to create an account, as you can’t use the same account as your child or partner.
Other sources of funding
1. Scholarships, grants and bursaries
In addition to loans, there are many alternative funding opportunities through scholarships, grants, and bursaries. Despite popular belief, these are not only given to those from disadvantaged backgrounds or the academically gifted. Scholarships are given for all sorts of reasons, including some that are open to all students, and the application process involves just writing a short essay.
Each university offers its own scholarships, but plenty of others are offered by companies, professional associations, and charities that are not generally advertised by the universities.
Encourage them to apply for scholarships and tell them to register at the funding hub and sign up for the newsletter, which will keep them updated when new opportunities arise. You’ll be amazed at how much they could be eligible for—and remember, this is free money that does not have to be repaid.
2. Easyfunding
This scheme allows you, as the parents, guardians or even other members of the family or friends, to support a student by generating free donations to them every time you shop online. Retailers signed up to the scheme donate to the students’ university costs. Hence, each time you make a purchase, it is a great way to generate additional funds for them without costing you anything extra. Find out more at https://www.easyfundraising.org.uk/blackbullion
Differences in costs
Where your child chooses to attend university will impact how much university costs parents, with London being the third most expensive after Edinburgh and Glasgow. (Timeout, 2022)
Weekly student rent in somewhere like Lancaster (in a shared house) might be around £83/week, whereas in Brighton, it is more likely to be around £120/week. When students are getting the same maintenance loans regardless of where they are studying, these can be significant factors in the amount of extra money you will need to give them.
What they will need to spend money on
The biggest cost will be accommodation. The cost of this varies from location to location and by accommodation type. Every university will have different bands of accommodation, from pretty basic to more “luxurious”. For example, it might have an en-suite shower room instead of a shared one, a communal lounge or a kitchen. There is also the choice of private accommodation off campus, which is generally cheaper than living in Halls, but most Freshers prefer to live on campus. Living in halls provides an easy first step to independence, without worrying about paying bills, dealing with a landlord and cooking for themselves if they choose catered accommodation.
Catered accommodation, although convenient, is not always a cheap option. Students usually have to buy a package, and you may find that you are paying for meals they won’t eat. Some catered halls offer food cards, so if the student doesn’t return to the halls for lunch, they can use their card in the canteens on campus instead. Consider whether they will use the fully catered option without this option. How often does your son or daughter get up for breakfast, especially on weekends? If they have special dietary requirements, the university will try to cater for them. However, they may find these quite restrictive and end up eating elsewhere.
When considering the cost of university for parents and which accommodation to choose, it is worth comparing the weekly cost of catered accommodation to what you think they might need to spend on food if they catered themselves. You would be surprised how even the laziest of cooks can manage to feed themselves when you’re not there to do it for them.
Other things you should factor into their weekly budget are:
Laundry
Most on-campus laundries cost around £5 a week. If you provide them with a clothes horse that they can use in their room, this could save money on tumble drying.
Books
Textbooks are expensive and a cost that most students don’t always factor into their budgets. One textbook can cost up to £50 or more. Although there are generally some copies in the library, students are often restricted on how long they can keep them and obviously can’t make notes on the books. It is important not to rush out and buy all the books on the reading list at the start of the term. They will soon work out which books are essential and which they can get away with borrowing from the library for a week at a time. There are also sites such as Abebooks or Amazon where you can pick up second-hand copies.
Course materials
Course materials vary tremendously depending on the course they are studying. For sciences there will almost certainly be some special equipment they will be required to buy. In particular, the cost of course materials for creative arts should also be factored. This includes the cost of final projects, which can very quickly add up, and no extra loan is provided for this.
Printing
Although a lot of work can now be submitted electronically, there is still some requirement to print course work, which must be paid for. Students are usually given a printing account that they can use to print their work. Printing costs are usually around 5p/sheet, which can soon add up.
Food
If they are self-catering, they need to have money for food on the evenings, plus anything they might buy for lunch on campus
Entertainment
Socialising is an essential part of uni life. There will inevitably be some cost involved, although finding cheap entertainment on campus is usually not complicated. Entertainment in non-campus universities will inevitably cost more as students enter town for evening activities.
Travel
Travelling to and from campus if they are not on campus and to and from home if you want them to come home. This can be a significant expense. If they are a long journey from home, booking and planning ahead can save a considerable amount of money if you get Advance tickets.
Toiletries and cleaning products
OK, the latter might not feature too highly on their list of priorities, but we’d like to think that they won’t forsake the former entirely!
Cooking, budgeting, managing money and shopping around
These are all things that you should try and drum into them when considering the cost of university for parents. The £70 a week given to one student who knows how to shop, cook and budget will go a lot further than a student who doesn’t look at prices, buys ready-made meals and doesn’t keep an eye on their bank balance.
Of course, these skills are valuable life skills that will serve them not only while they are students but throughout their lives. Teach them now as they set off for the first time with money in their pockets.
As a student, they are entitled to lots of discounts. Make sure they take advantage of these. Encourage them to make this a part of their everyday shopping habits. Many universities will have their discount arrangements with local businesses and shops. Students can take advantage of it simply by showing their Student ID. There are also some national websites and discount cards with which they should familiarise themselves. This can save a lot of money over the course of their student life.
Remember that the Young Person’s Railcard and the National Express Student Coach Card can save money on travelling costs to and from home.
To work or not to work?
Most students these days have some part-time job to supplement their income. As you can see from the above, it is not easy to manage on the Maintenance Loan alone. When factoring in the cost of university for parents, if you cannot give them enough, they will need to work to earn additional money.
University is stressful, especially around exam time or when coursework is due. Having the additional stress of having to go to work when you should be studying is not ideal. However, they will certainly no be alone. Even a few hours a week at checkout can make all the difference to struggling for money. Plus, as a supermarket staff member, they will get a staff discount!
The traditional idea of a student who has 5 or 6 hours of lectures a week, stays out late every night, lies in until midday and then might decide to do a bit of studying, is now an anachronism. Students have to work hard to ensure that they do not end up with massive debt and no degree. Most of them are working part-time too. So if you are able to help them with a bit of additional money, it will go a long way to reduce stress levels.
What they will need to take with them
The initial outlay can also be a major expense when processing how much university costs parents, which many will not have budgeted for. Your child is moving away from home, probably for the first time. They will need a lot of equipment to get them started. It is estimated that each student spends around £150+ before they even step out the front door.
Here is our checklist of things they will need to pack
Bedroom
•Duvet
•Duvet covers
•Sheets
•Mattress protector
•Pillows & pillow cases
•Blackout blind
•Doorstop
•Storage boxes
Bathroom
•Bath towels
•Hand towels
•Toilet brush
Kitchen – (if self-catering)
•Saucepans and frying pan
•Kitchen knives
•Chopping board
•Colander/sieve
•Grater
•Potato peeler
•Spatula/masher/slotted spoon
•Measuring jug
•Weighing scales
•Bowl
•Wooden spoon
•Baking tray
• Oven-proof dishes
•Can opener
•Bottle opener
•Cutlery
•Plates and bowls
•Mugs and glasses
•Storage containers
•Cling film
•Aluminium foil
•Tea towels/oven gloves
•Clothes horse
•Dish cloths
Stationery
•Paper
•Pens
•Hole punch
•Stapler
•Glue and Sellotape
•Files
•Blue tack
Computer Equipment
•Laptop
•Memory stick
•Laptop cover/bag
•Microsoft Office
First Aid Kit
•Plasters
•Pain killers
•Cold & flu remedies
•Anti histamine
•Antiseptic cream
•Antiseptic wipes
Important Documents
• Passport (ID)
• Driver’s Licence
• Correspondence from the University
• Student Loan documents
• National Insurance Number
• Bank Account details
• Insurance documents
It’s all in the planning.
Perhaps, for the parents, the biggest concerns about what university is going to cost you come from not knowing or not understanding where the costs are incurred and therefore worrying that you won’t be able to afford it. We hope that this article has help assuage some of those concerns with how much university costs parents. With some careful planning and budgeting and educating them, you can minimise the financial pressure that your son or daughter going to university can have on you.
