Bank of mum and dad

[Grant Fondo]

A quick look at the rules show that a household income of 25k means a student can apply for the maximum loan of £8400. A household income of around 60k or above means a student gets the minimum loan (not means tested). There is a sliding scale between these. If this is the system, the income amounts seem about right to me.
When i was a student, back in the days of grants, some got a full grant, some got nothing, most got something in between - all dependent on parental income. The difference was that the level of debt you started your working life with was entirely dependant on how careful you were with your money, not on how poor you were to start with.

AAAAH YES! The good old days, travel grant, equipment grant, field trip grants (Venice and Chicago paid for by Dorset council, no, honestly), rent rebates, shall i stop there? Little in modern life has changed so much in the last 30 years, i had 2 grand in the bank when i finished my degree and 4 grand after postgrad, guess i get to make up for it if the nippers go to Uni?

 

[Julia9054]

Touche
Realistically at most they'll be paying back £50- 100 a month. I don't think it's the millstone round their necks some do.
That said, the system sucks, and it needs changing.

I agree.
Though mine are both music students which means that they are either going to be fantastically rich and be able to pay the lot off in one go or more likely are never going to get near earning £21000!

 

[Julia9054]

AAAAH YES! The good old days, travel grant, equipment grant, field trip grants (Venice and Chicago paid for by Dorset council, no, honestly), rent rebates, shall i stop there? Little in modern life has changed so much in the last 30 years, i had 2 grand in the bank when i finished my degree and 4 grand after postgrad, guess i get to make up for it if the nippers go to Uni?

No one is saying the system didn't need some reform - I recall being able to sign on during the summer holidays - but you were not penalised for coming from a poor family.

 

[User482]

You're wide of the mark if you are implying I'm clueless to the cost of raising a family but you are right in that I made a choice.
I chose to not pursue a career and to manage on a shoestring so that I could stay at home and raise my children because it was important to us as a family.
The result of that choice is that we still have 25 years of mortgage payments to make and I'm stuck in a part time minimum wage job with a substantial amount of debt to chisel away at.
And I'd make that choice every time.

You made choices with predictable outcomes, but what I don't understand, is having accumulated debt yourself, why you are so keen for your children to do the same.

 

[Julia9054]

You made choices with predictable outcomes, but what I don't understand, is having accumulated debt yourself, why you are so keen for your children to do the same.

Apart from the fantastically well off, I don't see how anyone's children can access higher education without accumulating debt.

 

[Sandra6]

You made choices with predictable outcomes, but what I don't understand, is having accumulated debt yourself, why you are so keen for your children to do the same.

Because if you want something you can't afford you either go without - until you can - or borrow the money to pay for it.
They wanted to go to uni, the only way to afford it was to borrow the money.
Same as when they want a house. Or a car. Or anything else for that matter. Some things you can save up for, or go without, or you can borrow responsibly.
It's their choice, same as it was mine.

 

[User482]

Apart from the fantastically well off, I don't see how anyone's children can access higher education without accumulating debt.

Sure, but @Sandra6 is arguing for the right to accumulate even more!

 

[User482]

Because if you want something you can't afford you either go without - until you can - or borrow the money to pay for it.
They wanted to go to uni, the only way to afford it was to borrow the money.
Same as when they want a house. Or a car. Or anything else for that matter. Some things you can save up for, or go without, or you can borrow responsibly.
It's their choice, same as it was mine.

Well no, there is a third choice: financially support your children to do the things you describe. You don't wish to and that's fine, but it seems a bit rich to complain about the unfairness of it all.

 

[Grant Fondo]

No one is saying the system didn't need some reform - I recall being able to sign on during the summer holidays - but you were not penalised for coming from a poor family.

True

 

[nickyboy]

Well no, there is a third choice: financially support your children to do the things you describe. You don't wish to and that's fine, but it seems a bit rich to complain about the unfairness of it all.

Yup....if you go back to @Crackle 's post there is a "third way". It's not like parents can't see this cost coming. Presupposing that one's children are suited to university there is a long time to make some financial provision for the cost. Maybe not all of it. Indeed, it may not help them in the long run to pay for it all even if you could. But for sure there are a lot of years to make some plans

Of course a lot of parents are living hand to mouth and can't save anything. They are the parents of children who get full grant. But as you edge up to the £60k combined income level, there is enough time with a bit of careful planning to manage one's finances to help with the costs of university

 

[Julia9054]

Yup....if you go back to @Crackle 's post there is a "third way". It's not like parents can't see this cost coming. Presupposing that one's children are suited to university there is a long time to make some financial provision for the cost. Maybe not all of it. Indeed, it may not help them in the long run to pay for it all even if you could. But for sure there are a lot of years to make some plans

Of course a lot of parents are living hand to mouth and can't save anything. They are the parents of children who get full grant. But as you edge up to the £60k combined income level, there is enough time with a bit of careful planning to manage one's finances to help with the costs of university

No grants @nickyboy - only more loans.

 

[nickyboy]

No grants @nickyboy - only more loans.

My mistake, I really should pay more attention to what I write.

Sadly son#2 will not get the full loan so I will have to make up the difference. The only issue is whether I charge him nominal, commercial or punitive interest rates

 

[Sandra6]

Yup....if you go back to @Crackle 's post there is a "third way". It's not like parents can't see this cost coming. Presupposing that one's children are suited to university there is a long time to make some financial provision for the cost. Maybe not all of it. Indeed, it may not help them in the long run to pay for it all even if you could. But for sure there are a lot of years to make some plans

Of course a lot of parents are living hand to mouth and can't save anything. They are the parents of children who get full grant. But as you edge up to the £60k combined income level, there is enough time with a bit of careful planning to manage one's finances to help with the costs of university

If only it were that simple.


Martin Lewis is on about saving for your child's pension now ffs!

 

[Sandra6]

My mistake, I really should pay more attention to what I write.

Sadly son#2 will not get the full loan so I will have to make up the difference. The only issue is whether I charge him nominal, commercial or punitive interest rates

No. You don't have to. You can choose to or you can expect him to manage and get a job if he needs to.
This belief that parents " have to" cough up is the problem imo.

 

[screenman]

My youngest spent his 4 uni years in Lincoln which enabled him to live at home and keep his retained firefighter job. He considered this to be the cheapest way leaving him some money at the end, he did get a large bursary for his last year.