The Cost of Sending a Child to University

There are many financial considerations to make when sending a child to university. With tuition fees now capped at up to £9,250 a year, the cost implications of these fees, as well as other factors, can have a huge effect on you as much as your child.  

While education is important, it’s worth taking the time to look at the money that will be spent over the course of a typical three-year undergraduate degree in order to assess your finances and take stock of how much you’ll need.

Tuition Fees

This is the biggest chunk of money that’s required when your children start their studies. However, it makes financial sense to take out a student loan to cover the cost of these rather than paying for them upfront.

The reason it makes more financial sense is that if you have the money set aside to pay for fees, this will ultimately work out more expensive than using a loan. The loan will expire 30 years after being taken out and the majority of students will never pay this all back.  

The loan is worked out based on your household income and where they are living when they start their degree. The student loan is split into a tuition fee loan and a maintenance loan that covers living costs.

Accommodation

Unless your child has decided to stay at home with you and undertake their degree in their home city, they’ll need to pay for their accommodation. Most undergraduates will move into student halls of residence in their first year before moving into a shared house.

The cost of the student halls will come out of the maintenance loan, however there are other things to factor in once they move out of halls and into a private tenancy in a shared house. The main cost you’ll need to factor in is tenants liability insurance. This covers the cost of damage to a landlord’s property and, as with any type of insurance cover, you’ll need to pay monthly for this.

This is a worthwhile investment, however, as the cost of repairing or replacing some items could outweigh the cost of your monthly insurance. For comprehensive cover, HomeLet offers an affordable package.

What Next?

If your child is about to embark on three years at university, it’s worth taking the time to talk to them about how they budget, but it’s also useful to set aside some savings to help hem out where needed.