Financing your children at university or college

“Many parents aren’t aware that they are expected to pick up the slack, which can seriously impact on their finances, especially if they’ve more than one child at university.  For that reason, parents should start saving early to ensure they can manage the extra costs.” Martin Lewis, Money Saving Expert.

Student loans have been in the headlines as of late, with the announcement of student loans costing double for many studying in England from September 2023.

Martin Lewis covers this topic in more detail, highlighting 3 changes which will impact on how of their loans students will repay.  To summarise these changes: students will pay more of their student loan back (less contribution from government); the loan repayment period is increasing from 30 years to 40 years; but the student loan interest rate will be lowered.

“For around a quarter of a century, we’ve educated our youth into debt when they go to university, but never about debt.” Martin Lewis, Money Saving Expert.

HOW MUCH??

With newspaper headlines quoting students leaving university with £50,000 of debt, it is understandably leaving some very disheartened, with doubts about affordability. 

In fact, Save the Student have quoted £61,000 as an average cost of going to university inclusive of fees and living costs.  However, “when it comes to Student Finance, remember that the cost of university is not the same as what you pay.” Save the Student.

Martin Lewis discusses costs Vs the price tag in more detail, it may not be as bad as you think!

COST OF LIVING AT UNIVERSITY

This will vary as to which university location is chosen.  According to research by Save the Student, average living costs are £924 monthly with rent being the biggest cost by far (£418).

HOW MUCH WILL PARENTS NEED TO CONTRIBUTE?

The most recent Student Money Survey found that, on average, parents contribute £149.80 every month to their child at university.  Given individual circumstances, this could be much much more.

GOOD NEWS FOR THOSE STAYING AT HOME TO STUDY IN NORTHERN IRELAND (NI)

Something to consider when helping your child choose their university or college place in the future.  Tuition fees are HALF of those in England, Scotland and Wales (for students from NI, studying in NI).

GET SAVING!

A strong message here is to start saving what you can to plan for your child’s future higher education.  AND encourage family to set their children and grandchildren up with as healthy a financial future as possible with our Junior account facility for those aged 0-15 years.

LOWER COST FLEXIBLE LOANS

If you do need some support however, to help fund your child this student year, contact us find out if you are eligible to apply for one of our lower interest rate loans (starting from 3.9% APR* Ts/Cs apply) or to query topping up an existing loan. 

We are here for YOU and your family.

Email creditunion@harpandcrown.co.uk or phone 028 9068 5198.

“Save regularly and borrow only what you need.”

The Harp and Crown Credit Union provides safe, secure, flexible finances for the wider police family in Northern Ireland.