Financing your children at University or College

07 August 2024

Do you have a child or more than one child heading off to college or university soon? Or perhaps you’re planning for this big event in one, two or three years’+ time. Are you ready for the financial investment which comes with your child studying away from home?

Since September 2023 the cost of student loans doubled for many students studying in England.

There were three major changes made that impacted how much of their loan’s students will repay. To summarise these changes:

Students will pay more of their student loan back (less contribution from government).
The loan repayment period has increased from 30 years to 40 years.
The student loan interest rate has been lowered.

HOW MUCH??

The Student Loans Company says graduates in England leave university with average debts of £44,940, it is understandably leaving some very disheartened, with doubts about affordability.

In fact, Save the Student have quoted £66,560 as an average cost of going to university inclusive of fees and living costs.

COST OF LIVING AT UNIVERSITY

This will vary depending which university location you chose. As of 2024 the average monthly living costs are £1,078, with the biggest monthly cost being rent at £439.

HOW MUCH WILL PARENTS NEED TO CONTRIBUTE?

In a survey by save the student in 2023 it was found the average student receives £227 a month from their parents. But parents could be expected to contribute over £6,000 a year given individual circumstances.

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.