Be warned: Uni costs hit home straight away

A warning to all students’ parents... For years people have been told they don’t need cash up front to go to university.

Yet with just a few weeks before they head off, I need to remind you that this isn’t true and that students and parents need to sit down now to discuss money.

This isn’t about tuition fees. Undergraduates get those paid for them by the Student Loan Company and only repay after graduating, if they earn enough.

It’s about the cost of living while studying – by far the biggest practical challenge for most students. All students in England (except part-timers aged over 60) get a loan to support them. Yet this loan is means-tested and the means-tested proportion has increased over recent years from a third to over a half.

For almost everyone under 25 this test is based on household income. So the more parents earn, the smaller the loan the student gets.

CONTRIBUTION

In other words while students are old enough to vote, have sex, marry and fight and die for our country, they aren’t classed as independent adults for student finance.

And as the amount is dependent on parental income, it is implicit that if they get less, parents should make up the gap – effectively a parental contribution.

Yet this is all hidden. Parents are not told about it. I’ve lobbied the Government to change it, to no avail. The loan letter simply tells you what you’ll get. Yet it should also say what the maximum loan is and the parental contribution.

As they don’t, you must work it out for yourself. Subtract the loan received from the full loan – which for new starters this year is £7,324 (living at home), £8,700 (living away), £11,354 (living in London). Of course you may not be able to afford it, but at least knowing is a start and stops arguments.

And for those with children likely to go to university in the future, my advice is start saving now. For more help and the amounts involved see mse.me/parentalcontributions.