2 minutes reading time (418 words)

Saving for the true cost of University

2-Investments
The true cost of University can be quite scary 

- UK Universities currently charge up to £9,250 per year 
- Accommodation costs are currently very roughly £5,250 per year outside of London 
- Subsistence will probably cost a further £5,250 per year

So in reality about £19,750 per year.

Students loans -  are available to cover the University costs which are paid directly to the University and therefore covers this cost
There is also a maintenance loan available of about £8,500 per year.

Paying back loans – The student will start to pay back the loan once he/she is in work and earning over £21,000 a year, at a rate of nine per cent on any income above £21,000. So if he/she were earning £25,000, he/she would pay back nine per cent of £4,000 or £30 per month.

Currently, the interest on student loans is 3% above RPI per year which is about 6% per year.
Any amount still owing 30 years after you commenced repayments will be cancelled and the loan is written off.

So the availability of these loans is set up by the UK government in order to take the responsibility of funding children’s university education away from the parents. So whilst putting your children through University is not necessarily a parents responsibility you may want to save towards some or all of the cost and if you are thinking of making plans to do so……. this is how a monthly savings plan might help.

Assuming an average annual net growth of 5% and

Assuming University looms in 10 years time.
each £100 per month of savings should give a pot of about £15,528

Assuming University looms in 12 years time.
each £100 per month of savings should give a pot of about £19,676

Assuming University looms in 14 years time.
each £100 per month of savings should give a pot of about £24,259

Assuming University looms in 16 years time.
each £100 per month of savings should give a pot of about £29,324

Assuming University looms in 18 years time.

Our Independent Financial Advisers are always happy to meet at our clients' preferred location and time and to have detailed initial discussions with no obligation.

Please contact us by calling 0115 967 0888 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.


Veracity Managed Portfolio's Analysis 01/12/2017
Veracity Managed Portfolio's Analysis 06/11/2017

Related Posts