Your child is off to university and you’re a very proud parent. No matter how proud you are though, the soaring costs of university might be making you worried about how you’re going to help your child afford their education. There are some options for raising the funds, whether you qualify for loans or grants, or are paying for it yourself.
Pay Up Front
If you don’t want to take out any loans, you could pay up front. Even paying for part of the costs, for example, paying for the accommodation up front, would enable you to minimize the amount of loan needed, leaving less for your child to pay off when they graduate.
You could pay up front from your own funds, from your savings or with a loan like Evolution Money’s homeowner loans.
Student loans sound scary, but they are actually a very safe form of debt. Interest rates are lower than the average loan, and the loan won’t count negatively against your child when they apply for something like a mortgage or any credit later on.
Tuition fees are paid straight to the university, and your child won’t need to worry about starting to pay it back until they graduate from university and get a job that pays over a certain threshold, depending on when they start their course. Loans expire after thirty years too, so they won’t have it hanging over their heads forever.
You can apply for a loan for a tuition fee and a maintenance loan. The tuition fee loan, unsurprisingly, pays the tuition fees. A maintenance loan is paid to your child and can be used for costs like accommodation and other living expenses while they’re at University.
Means-Tested Student Finance
Means-tested student finance means the student finance body assesses whether you’re eligible to receive more maintenance support due to your household income. Those with a lower income will be entitled to claim more financial support.
Household income refers to what you and your spouse or partner living in the same home earn annually. If you’re the one sponsoring a student’s application for this kind of help, you will need to submit evidence of your income.
This information is private, although you can ask them to share it with the university so they can use the information to allocate any relevant scholarships, bursaries or other extra funding.
All students are eligible for a basic rate of maintenance support, whether your submit income information or not, but means-tested finance can help you to afford university if your household has a lower income.
Their Own Earnings
If your child wants more money to spend on things like going out while they’re at University, suggest they take on a part time job. Businesses in university towns will be used to fitting shifts around their studies. Retail, bar work or working in restaurants or cafes all suit students well.
Most students pay for university with a combination of help from their parents, student loans and their own earnings. This combination makes those scary sounding costs a little less scary.