Higher education is a major financial commitment, with tuition fees and living expenses quickly adding up. Planning ahead can help ease the financial burden and reduce reliance on borrowing.
Understanding University Costs
For 2024/25, tuition fees remain capped at £9,250 per year in England and Wales, while in Northern Ireland, local students pay £4,710, and Scottish students studying in Scotland pay no tuition. However, students from outside these regions may face higher fees.
Living expenses, including accommodation, food, and travel, vary widely, with students often needing between £9,000 and £12,000 per year. Over a three-year course, total costs can exceed £60,000.
Funding Options: Loans and Savings
The Student Loans Company (SLC) offers tuition and maintenance loans, with repayments starting once earnings exceed a set threshold. However, these loans don’t always cover all living costs, making personal savings an essential strategy.
Tax-Efficient Saving Strategies
- Junior ISAs (JISAs) – Save up to £9,000 annually, tax-free, until the child turns 18.
- Adult ISAs – Parents can use their £20,000 annual ISA allowance to grow a tax-free university fund.
- Child Trust Funds (CTFs) – Available for children born between 2002 and 2011, with similar benefits to JISAs.
- Regular Savings Accounts – Some banks offer high-interest savings options for children.
- Gifting from Family – Grandparents can contribute within inheritance tax-free allowances.
Managing Living Costs
To cover everyday expenses, families may:
- Save separately for living costs, topping up funds term by term.
- Encourage part-time work, ensuring it balances with studies.
- Consider student accommodation investment, though this requires careful planning.
Scholarships and Bursaries
Many universities, professional bodies, and charities offer grants and scholarships based on financial need or academic achievement. Checking eligibility early can help secure additional funding.
Planning Ahead
✔ Set a clear savings goal based on estimated costs.
✔ Use tax-efficient savings to maximise returns.
✔ Stay updated on tuition fee and student loan changes.
✔ Explore scholarships and bursaries before applications.
📞 Starting early can reduce financial stress and ensure a smoother transition to university life. If you need tailored advice on savings or tax planning, speak to our team today.