Parents forced to cut back to pay university costs
About a tenth of parents borrow to cover their children's university costs
Hundreds of thousands of
parents are cutting down on their "basic outgoings" to pay for their
children's university costs, says a financial data company.
Experian has published research claiming that about one in
five parents of students have faced financial pressures to support their
children.This includes paying for accommodation, travel and utility bills.
"University can be an extremely expensive time for parents and students alike," said Experian's Julie Doleman.
The costs are particularly tough if a family has more than one child in higher education at the same time, said Ms Doleman.
Record numbers There are about 1.6 million UK undergraduates, which would mean more than 300,000 families are cutting back on spending to support their student children.
About 10% of students' parents reported borrowing or using credit cards to cover the expense, according to Experian's analysis of a representative sample of more than a thousand UK families.
The data firm, which provides information for credit references, says too many parents underestimate how much their children's university costs will affect them.
Jane from Alton Writing about the scale of contributions to pay for her son at universityOur monthly outgoings are so much now that we are practically living on the breadline. It really is very stressful for both of us.”
Even though university students
are adults who have left home, the amount they can borrow in student
loans and receive in grants is still dependent on their parents' income.
The full student grant and loan, with a combined value of
about £7,000 a year, is available to students from families with a
combined household income of £25,000 or less.The more the parental joint income goes above this, the lower the grant and the amount that students can borrow, to a minimum of about £3,600 per year.
Parents are expected to cover the shortfall - and Experian suggests that this is putting many families under pressure.
About half of parents reported having to pay more than £5,000 towards their child's university costs.
This included anticipated items such as rent, food and books, but parents also reported having to lend children money at short notice, "bailing them out in an emergency".
Parents could also have to help with rising accommodation costs - universities in central London advise students that basic living expenses are more than £1,200 per month.
Experian's study claims that almost two in five parents "went without, to help fund their child's education" - and that about one in five faced even more hardship and were having to cut down on basic spending.
But a large majority of parents say they are willing to make the sacrifice to support their children.
"As young people start university, there are often unexpected costs that can be passed on to parents," said Ms Doleman.
These loans and parental support for living costs are separate from the £9,000 tuition fees, which are paid back by students when they start working and earn more than £21,000.
Record numbers of students are entering universities this autumn, and the removal of a limit on numbers next year is expected to lead to a 20% increase in undergraduate numbers.
Are parents facing
financial difficulties when their children go to university? Should
student loans be linked to parents' income?
My oldest daughter is at university. She receives the minimum maintenance loan available and we are having to pay all her other costs. With accommodation costs of nearly £5,000 we are not in the position of other parents who may face higher, but on top of the accommodation our daughter needs money for food, travel and entertainment. She is not a big drinker, does not smoke and spends a lot of her time studying. Even so the cost to us is still substantial and I earn a reasonable income. If we have to pay, at least give us a tax break like companies get when they invest in their future. Any one who says that the £9,000 fees that are paid every year are not a tax on education is fooling themselves
Finally an acceptance that the student loan system does not mean that everyone can go to University. The loans should not be linked to parental income and should cover all costs required to enable a student, who is independent of their parents, to go to university and afford to live at the same time. If the students are expected to pay back the loans out of their future salaries, then why make what they can borrow dependent on their parents' income? It is placing an expectation on parents to fill the gap and for students to either work part time or end up living on credit.
I currently earn more then the £25000 limit to get the maximum loan, but of this I support myself and my partner, leaving me with £275 after monthly expenses. (Rent, bills, food) with that left over I wouldn't be able to extend parental support to a student. When I went to university, just staying in halls would cost about £5000 for the two semesters. So with the £7000 living expenses loan, and without parental support that would give £167 a month to pay for food and any other expenses. Tell me, would you be able to buy a month's worth of food and drink for £167?
It's not the parents' jobs to pay for the kids to be drinking. I'm in Uni and use a part-time job to support my Engineering degree. My parents have contributed £500 in all since I began three years ago, and that was to cover my rent when student loan came through a week too late - paid pack as soon as possible. Students relying on mummy and daddy are completely unprepared for budgeting, and have little sense of value.
I am a student just going into final year. My parents gave me £50 a month in my first year, and the occasional Tesco shop when they came up to visit. From second year onwards they have given me no financial aid - as they needed the money more, and I was coping fine. I partially funded second year by getting part time work during the Christmas and summer periods of my first year. Now I am thankful I did a paid placement year as my student loan just about covers the rent for the cheapest halls my uni offers and not much else.
Initially, I think parents are very excited with the fact that their child is embarking on a life changing transition--university. Therefore, they are willing to put their life on hold to make sure nothing limits their child from having what they would have liked as a child e.g. money, resources and etc. In addition, I think parents don't want to be filled with regret and have thoughts of 'I could of... I should of..' Therefore, this 'self-sacrificing' of providing finances for their child even if it means they walk to work, is a way of them aiding in the sculpturing of the child's future. Most importantly, some parents have the vision of their children will be successful. Consequently, they will pay their parents back the money they used to support them.
My wife and I are paying £400 per month just to cover shared accommodation and utilities for our daughter.
I went to Oxford and because we only need to pay rent for 8 weeks a term it is "cheaper" than living else where. The accommodation cost was more than my student loan. There are very good bursaries for those from lower income families which are match by Oxford. Which meant some of my friends were able to save this money. However, those from middle incomes suffer as parents have to make up the difference. It was stressful being a student and knowing I had to ask for this money knowing that my parents would have to limit their spending or essentials in order for me to eat. The whole system is broken and the politicians, who never had to pay themselves need to realise that it is not just the very poor who need support. Children should not have to rely on their parents in order to get an education.
We are having to pay £50 a month to top up the rent on our sons flat, we are also paying him £400 a month to live and from this he has to put aside £50 a month to go towards bills. We also cover his mobile phone bill and if he wants to come home we do a 4 hr round trip to collect him and take him back. On top of this we have been informed that he needs an upgrade on his particular musical instrument and that means us finding £3500.00 upwards to do this, Our monthly outgoings are so much now that we are practically living on the breadline. It really is very stressful for both of us.
Currently at uni, and the financial pressure on top of your studying is a nightmare. On top of that you are think if you have done the right course, will I get a job? If I was at a in the Midlands then I would only pay £150 per week on rent and bills and about £100 on food and entertainment, however being in long changes all that. I now pay £350 per week on rent and bills. Also just getting the basic shopping for a week is just under £100. Parents earn over £40,000 but they don't believe I should be at uni so having to pay this on my own with a £3000 loan. Linking student loans and grants to parent income is a waste of time.
My husband and I are paying £300 per month just to cover shared accomodation, food and utilities for my son. My son also does part time work to cover any extra incurred costs. We didn't realise the extra costs that going to University would bring and I wish they did tell us.
I'm in the lucky position of having parents who give me the difference between my student loan and what my SFE support would be were they to earn nothing. This, combined with my lack of expensive hobbies and very reasonable accommodation costs, is enough. Plenty of people don't have parents in a position or willing to do so - they need to spend time they should be studying working. I'm now a fifth year medical student expected to be working longer with little time off a year as I approach graduation and responsibility for my living costs is now shared with NHS bursaries. They, in their wisdom, think I need £1000 less a year now than when I had holidays I could work in - it makes even less sense than the system for my first 4 years.
We have two children at university both of whom have health issues which makes part time work impossible - even in the holidays. We give top up support and both are very careful with their finances. We can cover their needs but only because we both work. It's hard to see them take out such huge loans but we trust a good degree will help with employment in the future, especially in light of their disabilities.
Finally someone admitting that the loan scheme is inadequate. I'm a student and do not receive any grants so would have to rely completely upon my £3,600 loan to live off during the year. As it is my parents help me out where they can. its not a case of bad budgeting, its a case of expenses being greater than income (loan). When just rent and bills comes to around £100 a week this is just simply not possible. Where I study there is a culture among landlords to up rent by 50% of its worth in student houses, because everyone does it, it has become the new 'market rate', this doesn't help. The parents household income limit of £25k isn't an adequate enough measure. There is no way of accounting for any other children/dependants, their expenses, household expenses, etc. The 'limit' should consider these things and be on 'spare income' once they have been deducted. The household that income is calculated on is also another point that annoys me. I left home when I went to uni and am currently in my 4th year of study, but the household that is used to determine your suitability for grants/loans only changes once you have lived away from your parents for 7 years.
My wife and I have a daughter and son at university at the same time. Their student loan doesn't even cover the cost of their rent, let alone the money they need for travel, food, drink, gas, electric, water, broadband, TV licence, textbooks, etc. Because my wife and I both work we aren't entitled to anything, so we have to fund both kids wholly out of our pockets - currently in excess of £700 a month. Meanwhile students whose parents don't work are given free fees, free rent, plus free bursaries etc. Yet our kids are expected to pay their fees back out of FUTURE earnings - so why should the uni costs be borne out of current parental income? It seems you will do fine as a student if you have very poor parents or very rich parents. If your parents are in the middle they are really squeezed. My son has friends who are triplets - how would their parents ever be able to pay if all three of their children wanted to go to university? It will be almost impossible.
Due to my parents salary, when I was at uni my student loan was just under £5000 for a year. My rent was £4800 a year, and that was cheap for my uni's location. My parents did not, and could not help me financially, so I had little choice but to get a part time job. As I entered my final year, I had saved enough money to give up my job. My grade improved by over 10% that year. Coincidence? I don't think so. Is it fair that your parents salary can affect your prospects?
