Uncapped University Fee’s could see more student debts
In our last Newsletter we spoke about the ever increasing costs of a child’s education and how to prepare for their future. This information is even more significant with the latest revelations regarding the University fee structuring in the UK. A major change of tack by the government could see university fees increasing to as much as £12,000 per annum.
Although capped at present, university fees are often funded by students through loans and/or part time working. However, a recent review from Lord Browne has urged that these limits be abolished, meaning that UK university fees could be charged more as in the US, which means spiralling annual costs for every degree course.
Ministers will now have to respond to the proposals. However, this is very disconcerting to parents and students alike as graduates would have to pay significantly more back in tuition fees and maintenance loans. Many are outraged by the prospect of ‘mortgage like debts’ by the time they leave university.
Whatever the outcome of this latest proposition, it certainly does drive the issue home regarding Education Fee funding. Instead of leaving university with the prospect of a bright future, many leave worrying about the large debt that is waiting to be repaid.
Others often have to juggle part time working around their studies which too can be exhausting and demanding.
Elizabeth Jones a recent university graduate said of her time at college. ‘It was very difficult, I was working evenings to pay for my fee’s and just my general day to day living expenses. I would often be working long hours, only to get home and have to start on a challenging college assignment. There were often times I thought of giving up’
This is sad reflection of modern university life for many students. However, this does not necessarily have to be the case. Jenny, spoke of her experience of University ‘I was lucky, my parents planned for me to go to university and so they saved from when I was young. I am thankful for that as it meant that I could concentrate on just my studies and enjoy the experience to the full’
However, Jenny’s experience wasn’t down to ‘luck’ but the careful planning by her parents, Bob and Sandra. Sandra goes on to explain. ‘Yes, right from when Jenny was little we decided we wanted the best for her. We didn’t always have a lot of money but we made sure that we would save a little each month for her future and over the long term it certainly added up. We are so proud of what Jenny has achieved, and are so happy that we made that decision all those years ago’.
At Guardian Wealth Management we help many parents to plan for their child’s future so that more can have experiences like Jenny. There are many saving plans available to suit every type of budget. If you would like to know more about Education Fee Funding then speak to one of our advisors who will happy to illustrate how this can work for you and build a tailor made plan just for your family.