1 Patricia J Arnold & Co Ltd Guide for Parents Budgeting For University September 2015 Intake

2 Patricia J Arnold & Co Ltd Using 65% maintenance loan figures

3 DescriptionIncomeOutgoings Maintenance Loan – 65% 1,243 Rent Food Household bills Travel Internet/ Phone/ Mobile Going out e.t.c 1/3rd University costs for living away from home One Term Only

4 DescriptionIncomeOutgoings Maintenance Loan – 65% 1,243 Rent1,579 Food413 Household bills176 Travel208 Internet/ Phone/ Mobile113 Going out e.t.c396 1,2432,885 Final balance – Outgoing exceed income 1,642 1/3rd University costs for living away from home One Term Only

5 DescriptionIncomeOutgoings Maintenance Loan – 65% 3,729 Rent4,737 Food1,239 Household bills528 Travel624 Internet/ Phone/ Mobile339 Going out e.t.c1,188 3,7298,655 Final balance – Outgoing exceed income 4,926 University costs for living away from home Total For Year

6 DescriptionIncomeOutgoings Maintenance Loan – 65% 2,967 Rent0 Food762 Household bills0 Travel2,181 Mobile phone336 Going out e.t.c.711 2,9673,990 Final balance – Outgoing exceed income 1,023 University costs for living at home Total For Year

7 Living Away From Home Loans repayable once working and earning above £21k p.a. Description Deficit - To be Funded each year Course Fees Maint Loan – 65% Total to be RE-PAID once earning above £21k Year One4,9269,0003,72912,729 Year Two4,9269,0003,72912,729 Year Three4,9269,0003,72912,729 14,77827,00011,18738,187 Or is this a “GRADUATE TAX!”

8 Living At Home Loans repayable once working and earning above £21k p.a. Description Deficit - To be Funded each year Course Fees Maint Loan – 65% Total to be RE-PAID once earning above £21k Year One1,0239,0002,96711,967 Year Two1,0239,0002,96711,967 Year Three1,0239,0002,96711,967 3,06927,0008,90135,901 Or is this a “GRADUATE TAX!”

9 Patricia J Arnold & Co Ltd Using 100% maintenance loan figures and grants available. These are both MEANS TESTED

10 Living Away From Home Loans repayable once working and earning above £21k p.a. Description Deficit - To be Funded each year Course Fees Maint Loan – 100% Total to be RE-PAID once earning above £21k Year One2,9159,0005,74014,740 Year Two2,9159,0005,74014,740 Year Three2,9159,0005,74014,740 8,74527,00017,22044,220 Or is this a “GRADUATE TAX!”

11 Living Away From Home – Includes Maintenance grant for household income less than £25k – N.B. This maintenance grant does NOT need to be repaid Loans repayable once working and earning above £21k p.a. Description Deficit - To be Funded each year Course Fees Maint Grant – this does not need to be repaid. Maint Loan Total to be RE-PAID once earning above £21k Year One1,2219,0003,3874,04716,434 Year Two1,2219,0003,3874,04716,434 Year Three1,2219,0003,3874,04716,434 3,66327,00010,16112,14149,302 Or is this a “GRADUATE TAX!”

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13 How can you help your children budget for this ?

14 Parents Notes Please be aware that along with the annual deficit incurred, the fees and maintenance loan debt will ultimately need to be repaid. This is currently 9% of earnings over £21,000 for 30 years! There is no early repayment option available at the moment! Interest is now being charged on student loans from the date received. Proposed interest rate is RPI plus 3% while studying and then a variable rate afterwards depending on your child’s earnings. This is your children's responsibility to repay the loan plus interest.

15 Parents Notes Is there anything positive ? Yes, allowing your children to take control of budgeting for this debt themselves should give them good financial responsibility for the future.

16 Parents Notes Please take note of what your child wants to study and whether this will be “beneficial” to the large debt they will incur (e.g. Doctor ‘v’ self-employed classical musician). Is the degree relevant to their final job choice? Could this level of qualification be achieved through training in the workplace or perhaps even business sponsorship? Taking on debt that could range from £38,000 to £53,000 plus interest needs thorough research and careful consideration. Please also note that regardless whether your child obtains 65% or 100% maintenance loan the final debt of going to university for 3 years will be the same. The difference will have to be funded from elsewhere Or…….should they become plumbers?

17 DescriptionIncomeOutgoings Living Away From Home Income – for full 3 years27,513 Expenses for full 3 years25,965 Excess Income for living away from home1,548 Living At Home Income – for full 3 years27,513 Expenses for full 3 years N.B. - This does not include any ‘keep’ parents may want to charge! 11,970 Excess Income for living at home 15,543 Projected Figures if getting a ‘Job’ – Based on getting a full time job and earning the current minimum wage

18 What support could students get? Queen Elizabeth High School

Household Income Maintenance Grant Paid in three instalments – one at the start of each term Maintenance Loan Paid in three instalments – one at the start of each term Total for living costs Max Tuition Fee Loan Note: not all courses will cost £9,000 Max amount borrowed Excluding interest University or college Scholarshi p, Bursary, Fee Waiver etc. £25,000 & under£3,387£4,047£7,434£9,000£13,047 Ask university or college £30,000£2,441£4,520£6,961£9,000£13,520 £35,000£1,494£4,993£6,487£9,000£13,993 £40,000£547£5,467£6,014£9,000£14,467 £42,620£50£5,715£5,765£9,000£14,715 £42,875£0£5,740 £9,000£14,740 £50,000£0£4,998 £9,000£13,998 £62,143 & over£0£3,731 £9,000£12,731

20 DescriptionIncomeOutgoings Maintenance Loan – 65% 11,187 Rent14,211 Food3,717 Household bills1,584 Travel1,872 Internet/ Phone/ Mobile1,017 Going out e.t.c3,564 11,18725,965 Final balance – Outgoing exceed income 14,778 University costs for living away from home Total For 3 Years

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22 Final Summary after 3 years Figures based on going to University and your child doing a 3 year degree course : If your child goes in 2015 – They could owe £38,187, plus interest on student loans. This is in addition to the £14,778 which will need to be funded over the three years. OR Figures based on getting a full time job earning the minimum wage : Full time Job- They could have savings of £15,543 in the bank. Although this does not included any ‘keep’ parents may want to charge!

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24 Patricia J Arnold & Co Ltd Guide for Parents Budgeting For University