Minding your money
From accommodation costs, to registration fees and travel expenses, the cost of third-level education is rising every year. But, should parents be expected to foot the bill and how much is too much?
Advice for parents and students on budgeting during college
According to the Expert Group on Future Skills Needs report from 2015, Ireland has one of the highest shares of third-level graduates in the European Union. But, while this is great news for Ireland, according to a new report by the European Commission, Irish students also pay the second highest fees in Europe after the UK, with fees of €3,000.
While more than 40pc of students in Ireland do not have to pay fees as they are entitled to means-tested grants, back-to-college costs are rising every year.
In the latest Eurostudent study from 2017, approximately 36pc of the total student population say that they are experiencing serious financial problems.
Final year college student, Laura Marrinan, 22 from Co Clare, says the SUSI Grant was able to help her financially survive for most of her time in college. But, the year she wasn’t eligible for this grant, she had to take out a loan.
“I got the SUSI Grant in years one, three and four which paid for my registration fees,” says Laura. “But, in year two, I was not permitted to have the grant. I had to take out a loan to cover the cost of my college fees. While I always had help from my parents when my money got low, I also had to work part-time and throughout the summers to cover my rent and other costs.”
Research carried out by the Irish League of Credit Unions (ICLU) into the cost of thirdlevel education in 2016 revealed that 22pc of students used their existing savings to pay their education costs. Also, 17pc rely on grants, 13pc take out loans and 68pc of students work an average of 17 hours per week during their college year. While this money assists with all aspects of living at college, including travel, rent and food, just over a quarter of students are forced to work in order to cover their educational costs specifically. But, there are students who find working during their terms very helpful to them in the long run.
Nursing student, Nicola Cullen, 23 from Co Wexford, says that while her family were able to occasionally help her financially, she still worked throughout her time at college.
“It was difficult at times, but my family were very good to me and took that pressure off. They really supported me. I have been working at jobs nearly my entire time in college too. I think that the part-time work is going to really help me in my future career.”
Working while in college can be a great idea for many as it can add to their CV and their experience in the workplace. But, if a student is working a job, does this cut back on how much parents must help out?
The price of education
According to the 2017 Eurostudent study, 42pc of a student’s expenditure is met by either a parent or a partner. It also shows that full-time students are now more reliant on
financial support from parents or others than they were five years ago.
The Money Doctor, John Lowe, a financial advisor, says that the expenses for third level are so costly that it would take the average parent their entire child’s lifetime up to college age to save up enough money.
“The cost of sending one child to university for four years is around €42,000,” says John Lowe. “If you save the €140 Child Benefit received every month for 17 years, you would only accumulate €28,000, which is still €14,000 short of the average cost. But parents usually use that payment to look after their child and can’t save it up.
“While it’s expensive in Ireland, I think we are lucky to not have the system in the United States, where it is simply impossible for any parent earning an average salary to fund their child through college. There, the cost of college could be upwards of €150,000 for the full four years. Students get an interestfree loan, pay nothing while studying and then when they get their first job, for the first 10 years of their working life, 30pc of their income goes to paying that debt. I think we would all rather see young graduates saving for a house than paying back loans so early in their lives.”
With the cost of college out of the grasp of the average parent’s income, should they cover the full cost?
“It completely depends on the circumstances. On the one hand it could help with their own financial independence, but on the other hand, you don’t want them to lose focus on their studies. My own daughter did not have a part-time job as she needed to study in her final year of her Computer Science degree. This turned out well because she got a First in her degree.
“You also want a student to enjoy their life, whether that’s going to a concert or going to the cinema. When you see the real cost in terms of hours worked, you realise that a student can’t really work all those hours while studying. The minimum wage is €9.80 and if they bought a concert ticket at €100, they would have to work nearly 10 hours to see that one concert.”
John says that most careers require an undergraduate degree and that parents should try to help their children with their education. But for how long should a parent be expected to pay for their child’s education? John says that when children get past their undergraduate degree, they are adults and should be able to pay their own way.
“Doing a masters or any other postgrad should be up to the student themselves. And it’s not just education – my daughter wants to take a year or two off after she finishes her degree, but she won’t be getting any funding for that. In my own opinion, the parent’s role is complete at this stage and now it’s up to them. But, of course this is an individual choice for parents to make.”
“WHILE IT’S EXPENSIVE IN IRELAND, I THINK WE ARE LUCKY TO NOT HAVE THE SYSTEM IN THE UNITED STATES, WHERE IT IS SIMPLY IMPOSSIBLE FOR ANY PARENT EARNING AN AVERAGE SALARY TO FUND THEIR CHILD THROUGH COLLEGE.”