How to prepare for sending your children to university

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As costs are higher than ever, it’s important to take whatever steps you can to plan ahead for your child starting university

With headlines about university tuition fees and the high cost of living for students staying away from home, paying for higher education can seem daunting. But there’s no need to be put off, and there are many things you can do to prepare and reduce the cost of continued study.

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Comparing tuition fees

Tuition fees are set by the university and not all charge the higher amount of £9,250 per year. It’s worth comparing what different universities charge to see if savings can be made. You can find out more about university tuition fees on the UCAS website. It’s also important to remember that different rules apply in Scotland.

Paying for accommodation and living expenses

One of the biggest expenses for would-be students is accommodation costs and living expenses, so it’s a good idea to shop around for the best option. For example, if your child is attending university close to home, then it might be worth them staying at the family home and travelling into university. It could also be worth comparing the costs of university flats or halls of residence with other rental accommodation nearby. Remember that many university halls of residence may also provide residents with meals, which could work out cheaper in the long run.

Checking for grants and bursaries

Students in higher education can apply to their university for various grants and bursaries. Each university will operate their own rules about who gets what, but it’s worth checking with student support services to see what’s available. Unlike student loans, these grants and bursaries don’t have to be paid back.

Applying for student finance

While tuition fees are extremely expensive, this money doesn’t have to be paid up front and student finance is available. These loans are split into tuition fee loans and maintenance cost loans, but current rules mean that your graduate son or daughter will not have to start repaying the debt until they earn more than £25,725.

Tuition fee loans are available up to the amounts listed below.

Full-time student 2018-19 academic year 2019-20 academic year
Full-time Up to £9,250 Up to £9,250

Source: www.gov.uk

To get a maintenance loan, you’re likely to need to give details of your household income. The loan is then paid into the student’s bank account at the beginning of each term and it will need to be repaid. You can find out more about loan repayments on the Student Loans Company website. The maximum loan amounts available, as shown on GOV.UK, are listed below, but much lower amounts apply when children have parents with higher incomes.

 

Full-time student 2018-19 academic year 2019-20 academic year
Living at home Up to £7,324 Up to £7,529
Living away from home, outside London Up to £8,700 Up to £8,944
Living away from home, in London Up to £11,354 Up to £11,672
Spending a year of a UK-based course studying abroad Up to £9,963 Up to £10,242

Source: www.gov.uk/student-finance/new-fulltime-students

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Helping them get the best student bank account

The student bank account market is fiercely competitive, offering all kinds of freebies such as vouchers and Amazon Prime subscriptions. It’s worth spending time with your child going through the options, and pointing them in the right direction. Interest-free overdrafts can save your son or daughter lots of money in the long run, as can student railcards.

Preparing a budget for you and for them

Going to university might be the first time your son or daughter has had to manage their money themselves, so it may be helpful to sit down with them to work out a budget. If you’re contributing to their living expenses, for instance, you could outline how much you’ll give them, add up how much they’ll be getting each term in terms of loans and income (from student jobs, for example), and work out how much they can afford to spend each month.

Where to go for help

There's lots of information out there to help you make the best decisions when it comes to university and financing.

For general information:

For finance-related information:

More on managing your finances