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Managing Student Finances: From Loans to Grants to Rent
Supporting your child with their transition to living independently at university is a huge step for both of you, and there is a lot to consider. Probably the biggest thing to understand is how to fund your child’s place at university and support them financially when they are living away from home.
Most people will struggle to cover the cost of funding a university degree outright so understanding and applying for tuition fees, maintenance loans and grants, all play a critical role in funding higher education.
In the UK there are two different types of student loans – tuition fees and maintenance loans, both issued by The Student Loans Company – a non-profit making government-owned organisation that administers loans and grants to students in colleges and universities in the UK.
Understanding the loans
There are Tuition Fee Loans which are specifically for covering university tuition fees and are paid directly to the university, so the money won’t physically land in your child’s account to pay the university fees. Secondly, there are Maintenance Loans. These are designed to help with living costs like rent, food, and travel. The amount depends on factors such as household income and whether the student lives at home, in London, or elsewhere. The repayment combines both loans and the terms of the loan mean it’s only repayable once the salary threshold is met.
Where you apply to for your loan is dependent on where you live and where you are applying to university. Here are the links to find out more about the loans:
- In England – https://www.gov.uk/apply-online-for-student-finance
- In Scotland – https://www.saas.gov.uk/
- In Wales – https://www.studentfinancewales.co.uk/
- In Northern Ireland – https://www.studentfinanceni.co.uk/
While grants for living costs were abolished in England in 2016, some remain in Scotland, Wales, and Northern Ireland. There may be other bursaries or hardship funds available through universities or charities depending on your circumstances so it’s worth using the eligibility checklist online to see what you would qualify for.
It’s important to research scholarships, bursaries, and grants that may be specific to their course, institution, or personal circumstances, as these do not require repayment.
Understanding University Finances: What Parents Need to Know
For parents supporting their children through university, understanding and planning for the financial aspects is crucial.
Start by explaining to your child how you plan to help fund and support them during their time at university and help them to understand the funding options available to them through tuition fee loans and maintenance loans. As a useful life lesson in borrowing money, it would be worth helping to illustrate what that borrowing costs and how it is repaid. There are some useful illustrations on the gov.uk website to show how the repayment works.
Once you’ve discussed income sources, help your child to apply for all available student finance, including tuition fee loans and maintenance loans, which are essential for covering education and living costs.
Working together to establish a realistic budget (including fixed costs like rent and bills, as well as entertainment and other costs) can help to reduce anxiety around managing student finances.
University finance tips for parents
- Use the opportunity to talk to your child about borrowing money, repayments and debt;
- Help your child by teaching them how to budget. Downloading a free spending tracker app can also help them to keep an eye on what they’re spending and what they have left for the month;
- Encourage them to save for the unexpected costs – a contingency fund for unknowns will take away any stress;
- Encourage your child to explore part-time work opportunities when they go to university that balance income with study time – a great way to top up their spending money and gain work experience;
- And lastly – They’re not always going to get it right first time – make sure they know they can come to you if they struggle with managing their money so you can help to guide them and give them advice. Open communication about financial management can ease the transition and reduce stress for both parents and students.
The Student Finance Timeline: Key Dates for Loans and Grants
Here is some information on student loans explained for parents. Applications for tuition fee loans and maintenance loans aren’t instant and can take up to eight weeks to process, so if you’re relying on these for the start of the course, it’s important to apply for the loans by the following deadlines:
- New students need to apply by mid-May
- Continuing students need to apply by mid-June
However, it’s worth noting that students don’t need a confirmed place at university or a UCAS offer to apply for student finance so they can start the process any time. This means that they can apply using their preferred choice and simply update the application when they get their A-level results and know where they are heading. In the event that they decide not to go they can simply cancel the application so there’s no reason to wait – the sooner they tick applying for student finance off their list, the better!
Applications for grants and bursaries for university students can happen alongside the student loan application process, however, each application and deadlines is different. Spend some time researching this and having visibility of all deadlines so you don’t miss applying for any that you may be eligible for.
The sooner you can secure your accommodation the more likely you are to get your first choice, but you may also be able to secure an early booking discount. Once confirmed you can then start to fix your budget as knowing the exact figure of your rent will help you to plan.
Why Choose Purpose-Built Student Accommodation with Collegiate UK?
Purpose-built student accommodation for university students is a great option to consider when looking at affordable student accommodation in the UK.
Collegiate UK is a leading provider of modern spaces located close to major universities all around the country. Not only that, but everything in the building is designed with community living in mind and our modern shared spaces encourage our residents to spend time together. Facilities at our properties vary and can include games rooms, cinema rooms, on-site gyms, bike stores, roof terraces and more! We have on-site resident teams too, who provide a secure environment, managing the building on a day-to-day basis while getting to know the residents and even organising socials for everyone to get to know each other.
Our all-inclusive rent takes away some of the financial headaches, giving your child one monthly cost which is fixed for the year. It helps them to plan a bit more easily without the worry of any fluctuating costs.
And with contents insurance and wifi included, it’s one less thing to research and sort before they head off to university – leaving them more time to think about what to pack (or not pack!).
Despite the fact it feels like there is a lot to do, it should be an enjoyable time spending time together through the process and helping your child embark on this next stage of their life.