Kids at uni - how did you help?

[Eoin]

In reality the interest rate is irrelevant.
Whether it’s 6% or 600% You only ever pay 9% of your earnings over the threshold. And it’s written off after X years. The higher the interest rate the more likely it will be written off.
As I said it’s a graduate tax.
Martin Lewis calculated that for most students they would need a starting salary of £45K to ever hope of paying off the student loan.
I, along with most financial advice, think help is better aimed at getting offspring on the housing ladder than paying off a student loan that may get written off anyway.

Also this. Take the maximum loan as well.

Why work your nuts off when you’re on the course that sets you on your future path? Giving your hours away at minimum wage.

Or.. work hard/play hard and get that future post and pay down your modest student debt earning £many more per hour as a graduate tax.

 

[adamk]

Daughter just starting to wind down end of 2nd year at Mani.
Although i'm a soft southener, we actively dissuaded her from any London Unis due to costs (rent and travel)
Manchester is a terrific city but has a real shortage of accommodation so prices are high.
We pay the rent, she pays the rest - utilities, trains, bus pass, food, deliveroo, just eat.

 

[tones]

I went to Newcastle Poly in the good old days of the early 80s when your fees were paid, and you got a local authority grant to live on, but it was means tested.

This was my case also, but in the 60s and at Queen's in Belfast. Now, any student in Ireland (both parts) has to fork out £4750 annually - mainlanders have to fork out £9250! Any other students have to pay fees somewhere in the stratosphere (and the Queen's website assures us that these are lower than other UK universities). I realise now how good we had it back then, and how badly the current generation has it.

Here in Swizzieland, we had to pay for our girls at Basel - CHF700 per term. An astonished US colleague asked, "Did you omit a couple of zeroes?" so we are thankful for small mercies. They lived at home, and we chipped in when necessary.

 

[garyi]

In reality the interest rate is irrelevant.
Whether it’s 6% or 600% You only ever pay 9% of your earnings over the threshold. And it’s written off after X years. The higher the interest rate the more likely it will be written off.
As I said it’s a graduate tax.
Martin Lewis calculated that for most students they would need a starting salary of £45K to ever hope of paying off the student loan.
I, along with most financial advice, think help is better aimed at getting offspring on the housing ladder than paying off a student loan that may get written off anyway.

Agreed, but does the 'debt' count when apply for mortgages etc?

 

[Bob McC]

Agreed, but does the 'debt' count when apply for mortgages etc?

Creditworthiness no, it does not affect your credit rating. So the size of the loan is irrelevant.

Affordability tests yes. How much does the 9% levy affect your ability to pay.

 

[halvis]

We are in Ireland.

My first went to Uni during COVID, he stayed in the halls which we paid for, but actually came home for a period because it was like a prison camp. We also paid the registration fees. The deal was that he paid for his own living expenses, but this fell flat on its face when COVID came along because their was no work.

He is about to start a masters in September, which he has taken a year out to save up for his accomodation and he will be expected to get a job to pay other living expenses. Looks like we will have to foot the very expensive annual registration fee though which is double that of a standard degree.

My youngest hopes to start in September, where she will also be expected to get a job to cover living expenses, but we will pay for the registration and accomodation.

It really does help when they pay their own way in terms of living expenses, we really felt it when my first wasn't able to work. If my daughter doesn't get a job, I can tell you we will be really screwed (very high maintenance).