Good news, it’s the time of year when teenagers are receiving their GCSE’s and A-levels. However it’s bad news if you have a joint household income of £45,000 or more; you’ll have to find on average £650 a month to fund your child’s university years.
The National Union of Students estimates that a typical student receives loans and grants of £14,370 in England, rising to £17,450 in London. However, it is estimated that the cost of tuition, accommodation and living costs reach £22,189 on average; £23,521 if you’re in London.
On average this leaves a shortfall of £7,819, or £651 a month.
Many students will try to fund this shortfall themselves by taking on employment in the summer time and working part-time jobs during term time but it usually falls on parents to stump up the shortfall each month.
Full-time students in England normally have to pay for their tuition fees and living costs for the duration of their time at university. Students can apply to Student Finance England (SFE) for loans and grants. However, a student who has lived in the UK for at least 3 years will only be eligible for a maximum loan of £9,000 a year (or £6,000 if studying at a private college or university). These loans have to be paid back, but not until the student is earning more then £21,000 a year.
Students can apply to the SFE for maintenance grant and/or loan to cover living costs but how much they get will depend on the income of their parents.
Grants can potentially worth up to £3,354 and don’t have to be paid back. Students are not eligible for these grants if the joint household income is more then £45,000.
Loans can be worth up to £7,675 but have to be repaid once the student is earning more then £21,000 a year.
Students with a household income of less then £25,000 will be eligible for the full grant. Partial grants will be approved for those with a household income of between £25,000 and £42,611 a year.
You can use SFE’s student finance calculator to work out what students loans, grants and extra support you are eligible to receive.