Student finance/loans etc

[trashpony]

There are some old threads on this but they all seem to be from the student’s perspective rather than the parent. My son is currently applying to university. Luckily I managed to intercept his UCAS application yesterday where he’d ticked that he was privately funded (!) but I’m just at a bit of a loss of where to go/what I need to do to find out about finance. Does the UCAS website have everything I need or is there some other dummies guide that would be helpful?

He’s terrible with money - so much so that I manage the PIP he receives for him. I’m very worried that if he gets a huge sum of money in September, he’ll spend half of it on warhammer and give the rest to someone begging on the street. Is there anyway that it can be eked out?

Any and all advice very welcome

 

[Winot]

There are some old threads on this but they all seem to be from the student’s perspective rather than the parent. My son is currently applying to university. Luckily I managed to intercept his UCAS application yesterday where he’d ticked that he was privately funded (!) but I’m just at a bit of a loss of where to go/what I need to do to find out about finance. Does the UCAS website have everything I need or is there some other dummies guide that would be helpful?

He’s terrible with money - so much so that I manage the PIP he receives for him. I’m very worried that if he gets a huge sum of money in September, he’ll spend half of it on warhammer and give the rest to someone begging on the street. Is there anyway that it can be eked out?

Any and all advice very welcome

You probably know the basics already but in case not - there are two distinct issues:

1. Tuition fees - payable to the university. Going up to £9,535 from next academic year. The student can get a loan for this, payable back after graduation over 40 years provided the graduate earns enough.

2. Living costs - payable to the student. The government can pay some or all depending on parental income). This is called the maintenance loan. Amount depends on where you're studying (see here Student finance for undergraduates).

You don't need to worry about E overspending on 1 above as he won't see it - it'll go directly to the university.

For 2, it depends on whether you are funding it or the government. If it comes from you then you can control it. If there's an element from the government then I'm guessing it goes directly to him (W1 doesn't get any maintenance loan - it all comes from us). Once he is over 18 then technically I guess it's his money.

How does he feel about your helping him budget once he's over 18 and has left home?

 

[trashpony]

Thanks. We’ve not really talked about budgeting but he’s got no idea on costs of things like rent, utilities etc. We should have a chat about it. I’ve also got no idea if I’m funding it completely or not! Will have a look at that link, thanks.

I sort of thought the school would provide a bit more info but they haven’t.

 

[youbeauty]

This is a good place to start: Get undergraduate student finance: step by step - GOV.UK (which I've just noticed is basically the same thing Winot posted - sorry!)

 

[Monkeygrinder's Organ]

Can you steer him somewhere that has catered halls of residence? As a bit of a halfway house to having to fully adult it.

 

[trashpony]

Can you steer him somewhere that has catered halls of residence? As a bit of a halfway house to having to fully adult it.

Good idea but he has a very restricted diet which he’s quite embarrassed about and also massive sensory issues around food (can’t go into school canteen, he and I have to eat separately). I think a room with cooking facilities with a shared living area might work.

 

[kalmatthew]

Also don't forget disabled students allowance if he is eligible. For dyslexia I was sent for an assessment and got a laptop, printer and a handful of specialist software as well as an allowance for consumables and I think textbooks (it was quite a while ago now though!) also it's not means tested and not repayable so well worth a look

 

[Santino]

Good idea but he has a very restricted diet which he’s quite embarrassed about and also massive sensory issues around food (can’t go into school canteen, he and I have to eat separately). I think a room with cooking facilities with a shared living area might work.

You will probably be able to make a case to his university that he should get priority access to their own accommodation, maybe even access to a shared flat style rather than the long corridors full of single bedrooms, depending on the institution.

 

[Saffy]

Student Finance England have an instagram account which my son found easier to understand than the website as everything is in bitesize chunks. He finds blocks of text hard to get through, so the videos made it easier.

 

[Looby]

Good idea but he has a very restricted diet which he’s quite embarrassed about and also massive sensory issues around food (can’t go into school canteen, he and I have to eat separately). I think a room with cooking facilities with a shared living area might work.

Think you’d need to look at studios but they’ll be more expensive and I don’t know if they’ll have common areas too.

 

[Winot]

Most universities we looked at provide accommodation in the first year so I guess you'll need to check how they will best accommodate his needs trashpony.

In later years most (Oxbridge aside) require you to go into private accommodation which is usually a house share. Unfortunately due to lack of supply there is pressure to sort this out before the end of the first term.

 

[Callie]

Good idea but he has a very restricted diet which he’s quite embarrassed about and also massive sensory issues around food (can’t go into school canteen, he and I have to eat separately). I think a room with cooking facilities with a shared living area might work.

Would be worth looking at what kind of accomodation the unis he's interested can offer and what restrictions they might have for things like cooking in rooms if that's what you mean? Definitely speak to them about what options and support they have on that front. My uni...a while ago now had some nice halls accomodation for first year students (little houses of 5ish students per house in a 'village' and some slightly less pleasant halls), less uni accommodation access for yr 2 but they did their best to house yr 3s iirc. This was mid Wales though so I think I was very lucky!

Definitely interrogate the unis about this and contact them once HR has a place to get any support available.

Money wise it might be worth him having more than one bank account - one for the main funds (no debit card) and another for day to day use? Work on a budget and have that amount put into his day to day account weekly.

One thing to be wary of and maybe have a discussion about is that banks pretty much throw credit cards at students.

 

[Riklet]

I got mine in 3 annual installments. No idea if it's still the same but it's likely. Make sure you apply to the uni for a bursary and any grants they have. That money will be given separately. If he's on PIP there's a good chance he'll get at least some funding.

It's good you checked his application, maybe look at moneysavingexpert for a more up to date write up but as far as I know the loan is divided into tuition and maintenance. Tuition goes straight to the uni.

I would say borrow as much as possible and dont worry about it, it's not a real loan anyway that affects credit rating etc.

 

[kalmatthew]

I would say borrow as much as possible and dont worry about it, it's not a real loan anyway that affects credit rating etc.

It might not impact credit rating but it will still be chunk out of income after hitting the threshold and can impact affordability calculations if not the credit rating directly. I wouldn't be afraid to take as much as needed but also wouldn't take it just for the sake of it.

 

[AnnO'Neemus]

Would be worth looking at what kind of accomodation the unis he's interested can offer and what restrictions they might have for things like cooking in rooms if that's what you mean? Definitely speak to them about what options and support they have on that front. My uni...a while ago now had some nice halls accomodation for first year students (little houses of 5ish students per house in a 'village' and some slightly less pleasant halls), less uni accommodation access for yr 2 but they did their best to house yr 3s iirc. This was mid Wales though so I think I was very lucky!

Definitely interrogate the unis about this and contact them once HR has a place to get any support available.

Money wise it might be worth him having more than one bank account - one for the main funds (no debit card) and another for day to day use? Work on a budget and have that amount put into his day to day account weekly.

One thing to be wary of and maybe have a discussion about is that banks pretty much throw credit cards at students.

That's how I (neurodivergent) have to try to manage my finances. I have a main bank account where money goes in and bills go out. Then I have a 'pocket money' account. I have inadvertently screwed up my finances recently by overspending, but it's generally worked quite well for quite a few years now.

There will be lots of temptations, in terms of going out, buying stuff, and yes it's tempting to access credit cards and student overdrafts. It can be hard to be sensible if you're neurodivergent, like ADHD or autistic and maybe have poor budgeting and planning skills and lack impulse control.

Also, it's hard when you're young and you're trying to keep up with everyone else. There's bound to be some students who are wealthier and have more disposable income, so there's the peer pressure to go out/participate in whatever else your classmates/housemates from halls are up to.