Can someone explain this to me please?

[Daisby]

Being a bit dozy here I suspect, but even though we have attended talks at school about university fees etc, I'm not sure where we stand here.

Background - DS wants to go to Durham University. Our household income is around 43k per year, although my DH has only very recently started a business, income could suddenly drop because it's not an established business and sometimes payment from people who owe us money is sporadic.

I have run the figures through a student finance calculator, and DS is only entitled to the tuition fees, plus the basic maintenance living cost loan (around 2500) give or take depending on our income (yet to be finally assessed as we don't have 1 yrs accounts yet). We earn just enough to not qualify for any help or benefits.

So - he has around 11.5k to use each year. The tuition fee is 9k, and the cheapest college at Durham is nearly 6k per year. So there's a shortfall of £3.5k.

Where does this remaining few grand come from? Plus spending money etc?

We can't possibly afford to give him this money as we have two other children and a large mortgage which we pay every month (obviously!) but it is by no means easy to pay it, as income fluctuates. Basically we use most of our money on bills and food and various other things - we don't have a great deal spare and certainly not £3.5k per year.

We can't sell our house and buy a cheaper one and use the equity from our house, as we can't get a mortgage with having less than three years accounts.

I could get an extra job I suppose, but then most of that money would be eaten up with childcare costs for our youngest.

I am sure there are loads of families in this situation, so I would appreciate some guidance please. When we've brought it up with school they just say that the maintenance loan covers the costs.......?

[Daisby]

I agree, the situation is awful for young people. I have no idea how people afford to send their child to uni - one of my friends said that she pays £550 per month for her DS in halls. I just don't have anywhere near that sort of money to give DS......

On paper we have a decent income, but it's only when you look at our mortgage (which is high because a) we live in an expensive area and b) we can't remortgage to a better rate as we don't have three year's accounts. DH was made redundant before our fixed rate contract ended so couldn't remortgage to a better rate before he was made redundant)and bills per month (food, fuel, insurance etc) that you realise we don't have spare cash to pay for this.

So basically, the answer is that parents pay the shortfall?

It is a huge shame. DS is a bright talented kid who would do well at his chosen course at this uni. His teachers are pushing him to apply there and other good unis. I'd like to be able to facilitate the opportunities I didn't have in life (uni education leading to better job etc) but there's no way I can make up that shortfall, short of selling my house or asking my other two kids to give up their activities etc, which seems unfair.

[boys3]

Daisby just been through this as DH (hopefully) starting Uni this October, Durham is his insurance.

On that household income your DS would be eligible for the full maintenance loan, which is about £5700 ish.

Don't forget household income is after any pension contribution made, not actual salary, plus for the assessment purpose it is reduced by just over another £1000 for each dependent school age child. So dependent on your pension contribs your actual assessed income might be more around the £40k mark, in which case your DS would also get a small element of grant.

It is an expensive business though. DS1 here fortunate to have an offer from Cambridge - we conservatively estimate that Cambridge will cost around £1500 - yes FIFTEEN HUNDRED - less per year than were he to go to Durham.

[SwedishEdith]

I realise I've not really thought about this yet. Is it based on house income regardless of who the parents are?

[Persipan]

Bear in mind that most student bank accounts will offer a sizeable interest-free overdraft, which helps. And, many students will work (either part-time during term-time, or in the vacations) which can make a real difference (and is a CV boost).

[Daisby]

boys3 that's interesting thank you, we make fairly large pension contributions and obviously our other two dependent children - didn't realise that you got a "discount" for dependents.

Another thing I've just found out that might put a spanner in the works - they assess the loan on the year my DH got a redundancy payment. Our income is substantially less than that year now, so i will have to apply for a form to get them to assess our current year finances, as it has more than halved.

But still........an expensive business!

[SwedishEdith]

Thanks for the link. It does say "parent's or partner's income" so I'll have to check what happens if part of household income is not from a parent ie my partner is not her dad. Unless someone definitely knows here?

[PiratePanda]

He may need to get a PT or summer job (or both). This is totally normal. But he might also think about going to a uni that either has loads more work opportunities (Leeds, Newcastle) or better bursaries (Oxbridge - rents are cheaper too usually).

[Bluestocking]

Have you seen this page? Durham has a Student Financial Support Officer you can contact for advice. Best of luck to your DS.

[sleepdodger]

I worked about 15 hrs a wk term time and about 60 during hols
My parents gave me £250 month
My loan was £3k year- which covered my tuition
I still had loads of fun!
Consider deferring a year and working / saving- could prob save £10k min and establish good work experience links

[Fairylea]

Most students on a low income will need to get a part time job as well. This is how everyone I know supported themselves through university, it's good for the cv and work experience too. I'd help to put a cv together now and use this to submit to various places as soon as possible as well as ringing up to see what might be available.

[LifeOfBriony]

For most students, the loan does not cover living expenses. There was no way we would have been able to make up the shortfall for DD.
DD took a gap year in order to work and save but couldn't find full-time work. She found part-time work with Explore Learning (after school tutoring), some infrequent bar work, and some private maths tutoring, as well as some voluntary things to boost her CV and keep herself busy. It was a lonely year, as most of her friends had gone away to uni, but she managed to save enough to support herself (and took out the maximum loan). She returned to Explore every summer and saved what she could towards the next year. In this way she avoided taking out a bank loan or overdraft and didn't have to work during term time. We supported her with a Sainsbury's "Meal ticket" (like a gift card in two parts) - DH put food money on the card every month. Grandparents gave her a bit of extra cash each term. I saved £25 per month and gave her this at the beginning of the academic year - this covered her fares and student railcard.

This all worked for her but took a lot of planning and thinking.

[senua]

I was going to say what sleepdodger said. If he defers for a year and works like mad then he can build up a nice little nest egg. He will also be more mature and therefore probably make a better student.

[goinggetstough]

swedish the loan/grant etc is based on the income of the household the student is part of. So either the income of both parents or a parent and parent's partner are taken into consideration.

[SwedishEdith]

Thanks going

[MedusaIsHavingaBadHairday]

We have an almost identical income..and two girls at University.
DD1 has receive the full student maintenance loan amount, (5.6k thereabouts) for each of the four years she ahs done so far , plus of course the tuition fees loan. I send her £50 a week for food/expenses and buy things she needs, and she also works shifts in the local hospital. She pays her rent etc out of her loan.

She is skint but survives! This year is her final year (medicine) so will only get the non means tested amount and very little from the NHS which leaves a £1500 shortfall :( That is going to be hard for us but we will have to find it.

DD2 is nursing so means tested bursary and tuition paid, but also works part time.. and it comes out about the same.

Working is a fact for most students.. both of mine are on very very full time courses but still manage to get hours in, so it really is doable!

[amothersplaceisinthewrong]

The maintenance Loan DOES NOT el cover all the living expenses - it will probably cover rent/halls and not a lot else. So either parents make up the shortfall or they get a job.

We paid the rent for our two and they used the loan for the rest. We also paid the tuition fees upfront for them. This was on the £3K, not £9K at year though!

[toothlessoldhag]

One thing that hasn't been mentioned is for the student to continue to live from home. Obviously this limits options somewhat, or completely if you're not lucky enough to live within reach of a university city.

DS is planning to do this and we're worried he'll miss out on the full learning as well as social experience. Still time to change the decision though: he hasn't even got his GCSE results yet!

[senua]

It'a bit like having a baby. If you thought too long about what could go wrong or thought about all the costs, then you would never do it. Sometimes you just have to jump in and hope that it works!

I didn't help mine too much and it's amazing what they can earn do when they have to. Of course they told me about friends who have parents who pay the rent and give them an allowance but there are also folks who are having to watch the pennies.
Students are very adept at living the cheap life.

[oatsosimple]

I am on a similar income and DD was able to get a bursary from her university of a few £k, this was based on her A level results as she needed at least 3 As. She also got just over £1k from the Access to Learning fund at her university which helped as well. Worth checking the university website to see what bursaries/scholarships they offer, though you usually have to apply fairly early on. She opted for self-catered flats as it was cheaper to do this and buy/make her own dinners than pay for catered halls. The extra funding meant she only had to work during holidays, as her course was quite heavy and term time working would have affected her studies. I wasn't able to help her with any additional financial help but she managed just fine.

[MillyMollyMama]

Daisby I think your figures are wrong because your DHs redundancy payment is exempt. If he had no income for a period of time you are actually in a better position. There is nowhere on the form that you declare money actually deposited or invested, only the income from the investments (or redundancy payment).

Also we have a substantial income and savings but our DDs took out the maximum loan, (no grant of course) and this was nearer £4000 for outside London and £5000 for London. I am interested that the London figure now quoted is way higher than my DD is getting so maybe we need to look at this. However I think the gap is less than you think. University was only free to the poor previously. My DHs parents had to pay for my DH and they earned a very modest income. I would look at the financial application form and you will see that your DS may be able to get more than you think.

[overthemill]

It is a lot of money but should be worth it in the end. We have dd1 about to enter 4th year of uni and she is on old system. She has taken out maximum loans and has finally , this summer, got herself a decent paying job for the whole summer and is saving around £1200 a month (pub/restaurant job 57 hours a week plus tips!) I thank The Lord as ds starts 5 year course in September and is on new system. He will also have to take out maximum loans but has - amazingly- got £17000 saved towards his uni costs. He has saved 10% of pocket money plus 50% min of all money gifts plus earned money where ever he can since age 10!!!