Why parents may need to save?
- This isn't about tuition fees. The Student Loans Company pays tuition fees for first-time UK undergraduates, and they're only repaid if you earn enough once you leave.
- It is about the maintenance (living) loan. Students are given money towards living costs (again only repaid if you earn enough once you leave). In England, for most under-25s the amount is means-tested based on family income, which for most means parents' income. The higher it is, the lower the loan.
- The system assumes parents will fill the gap. Yet it never tells that there is an implicit parental contribution, nor how much you'll pay. It just leaves students with far less money.
- This calculator is a ready reckoner to show you what to try to put aside. And how much you need to start saving now to help your child when they go to university.