Paying daughters Uni fees

Paying daughters Uni fees

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Discussion

Quarterly

Original Poster:

650 posts

117 months

Thursday 17th September 2015
quotequote all
What advice do you have for me? Should I pay for my daughters uni fees, will be around 45k for the 3 years. I can afford it, but it would hurt a bit. biggrin

lost in espace

6,136 posts

206 months

Thursday 17th September 2015
quotequote all
Tuition fees are £9k a year, you would be daft to not get the loan for this. What if she gets married out of uni and doesn't work/have kids? Or doesn't work for some reason.

If she starts paying the loan back pay it off.

Piersman2

6,596 posts

198 months

Thursday 17th September 2015
quotequote all
^ This.

My daughter has already done 3 years at uni, and is now doing medicine.

She's taken the max loans etc... available, owes a bloody fortune. However:

1. It's cheap to borrow the money
2. She doesn't have to start paying back until earning a decent salary
3. Who know what the future holds when the system crashes and all student loans get cancelled?

You'd be well pissed off if you'd paid your 45k and then 10 years down the line there was some kind of loan amnesty and all those that had taken the max got it scrubbed. smile


Quarterly

Original Poster:

650 posts

117 months

Thursday 17th September 2015
quotequote all
Thanks both. I won't be in too much of a rush to pay it off, we'll see what happens.

Sarnie

8,025 posts

208 months

Thursday 17th September 2015
quotequote all
lost in espace said:
What if she gets married out of uni and doesn't work/have kids?
^This

How would you feel shelling out £45k for her Uni.....she gets a half decent job and then marries the MD and becomes a house Wife.............Let her take the loans, if she starts getting deductions, pay the same amount back to her......repeat for circa 20 years drip by drip.............or you could lump out £45k in one go in the first three years!?!?

Sheepshanks

32,530 posts

118 months

Thursday 17th September 2015
quotequote all
Lesser amounts when my kids went to uni a few years ago but they both took the maximum loans and then we used the money to buy them cars when they graduated.

mikees

2,745 posts

171 months

Thursday 17th September 2015
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I thought that if she was successful the rates were rubbish and punitive to pay off. Very interested in the answer. I have 4 kids and contenplated what the op said despite the hit. Ouch they are 10-17 so a good P&L split

was8v

1,927 posts

194 months

Thursday 17th September 2015
quotequote all
Loans for the fees and pay it back themselves surely!

Living away at uni is the first time you learn the real value of money and prioritize what to spend it on (usually booze / rent / food in that order) so don't give them too much....

Once they have graduated and got a job they'll be asking for a house deposit so you'll be needing some money for that.

MrChips

3,263 posts

209 months

Friday 18th September 2015
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Find out a bit more about her course and how many hrs of lectures/tutorials there are as there can be an enormous difference.
In my case, I was pretty much in lectures most of every day so getting a job during the day would be difficult (jobs on campus are there but very popular).

I took out the max loan and my parents loaned me an extra amount somewhere around 200 a month to help ensure I could live and study without getting too snowed under. Whilst I agree that many see it as a perfect opportunity to teach their kids the value of money/work for a living/how to live away from home, remember that it can for many be an incredibly stressful time and it's not all parties and booze.

If you can afford it, then in my view I'd let her get the loan and just top it up with a much smaller amount to help with the rent/bills etc.
I could not thank my parents enough for what probably cost them a max of 2.5k a year.

alock

4,224 posts

210 months

Friday 18th September 2015
quotequote all
Let her take the loan and offer her £45k deposit for a house when appropriate. She'll be in a much better position for life with a low interest loan and being a home owner instead of having no loans and renting.

R1 Indy

4,381 posts

182 months

Friday 18th September 2015
quotequote all
Tell her to get her own loan.

Spend your money on yourself.

She can have whats left once your dead wink


lukefreeman

1,492 posts

174 months

Friday 18th September 2015
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Worst "I can *just* aford to spend £45k" thread ever.

Ozzie Osmond

21,189 posts

245 months

Friday 18th September 2015
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Sheepshanks said:
Lesser amounts when my kids went to uni a few years ago but they both took the maximum loans and then we used the money to buy them cars when they graduated.
"It's my entitlement, innit".

Ozzie Osmond

21,189 posts

245 months

Friday 18th September 2015
quotequote all
Quarterly said:
What advice do you have for me? biggrin
Unless your kids are idiots I would pay the fees and give them the chance to start out in life debt free.

gregf40

1,114 posts

115 months

Friday 18th September 2015
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Ozzie Osmond said:
Unless your kids are idiots I would pay the fees and give them the chance to start out in life debt free.
...until they have to get a mortgage (which they presumably will) and end up with a higher interest rate than the student loan?

Sheepshanks

32,530 posts

118 months

Friday 18th September 2015
quotequote all
gregf40 said:
...until they have to get a mortgage (which they presumably will) and end up with a higher interest rate than the student loan?
..although the student loan repayments might have an impact on mortgage affordability calculations.

RizzoTheRat

25,085 posts

191 months

Friday 18th September 2015
quotequote all
Ozzie Osmond said:
Quarterly said:
What advice do you have for me? biggrin
Unless your kids are idiots I would pay the fees and give them the chance to start out in life debt free.
If they're idiots then they might not end up earning enough to need to repay it biggrin

What are the student loan rates like now? If you don't want your kids to have debt you might still find you're better off leaving them to get the loans for now, and laying it off for them later with money you've had earning more interest than the loan's accruing. One of my Mrs's student loans was paying itself off with a negative interest rate at one point but I assume the current deals aren't quite that good.

Edited by RizzoTheRat on Friday 18th September 15:26

KTF

9,788 posts

149 months

Friday 18th September 2015
quotequote all
I thought you didnt pay the fee as such but took out a student loan and the fees were automatically rolled up as part of that?

More information and some example scenarios here: http://www.moneysavingexpert.com/students/should-i...

Edited by KTF on Friday 18th September 21:32

Greshamst

2,028 posts

119 months

Friday 18th September 2015
quotequote all
Student loans for tuition fees are one of the cheapest ways to borrow money that you'll ever find. There's no real time limit on it, and if you're not earning, you don't have to pay anything.
Maybe give her money for living, but definitely not for tuition.

TwigtheWonderkid

43,248 posts

149 months

Friday 18th September 2015
quotequote all
Ozzie Osmond said:
Quarterly said:
What advice do you have for me? biggrin
Unless your kids are idiots I would pay the fees and give them the chance to start out in life debt free.
If you want them to be debt free, just get them to take out the maximum loans they can and when/if they start paying them back, you can reimburse them each month at the time. As long as they know that the loans will never cost them, then effectively they are debt free.

But paying fees up front is madness, no matter how rich you are. A million things could happen that means they might never have to pay them back, including them getting struck by lightning at their graduation ceremony!!!