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Why do some students' parents pay their tuition fees?
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I really don't understand what motivates people to do this. It's completely illogical. Is it because they don't understand how the system for repaying student loans works? I also know someone who wants to use savings to repay a big chunk of her loan when they graduate, and I tried to explain to her why it was a total waste of money, but she didn't understand.
People often say "I wouldn't want that debt hanging over my head..." which is also total rubbish. I just wish people understood the system well enough not to waste their money like this. Does anyone else agree?
People often say "I wouldn't want that debt hanging over my head..." which is also total rubbish. I just wish people understood the system well enough not to waste their money like this. Does anyone else agree?
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#2
you do end up paying less by paying up front than you would if you relayed your loan over the 30 years, due to interest rates...
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#3
because then you have more money for drinking and partying my parents paid my fees but that was when it was only 1000
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(Original post by bellatrixb)
you do end up paying less by paying up front than you would if you relayed your loan over the 30 years, due to interest rates...
you do end up paying less by paying up front than you would if you relayed your loan over the 30 years, due to interest rates...
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#5
I guess if you have the money, it makes more sense to get it over and done with instead of having to pay it off for donkeys years. If my parents had a spare £9000 however, I'd rather they'd just use it for my living costs. Though I don't think they'd want to pay for me getting plastered at every opportunity, perhaps parents who spend it on fees are fearful of it being wasted elsewhere?
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#6
A friend of mine is going to some sub-par university in the US with annual tuition fees of $40k or something, and her parents are paying for everything (as well as living costs and "entertainment costs", etc). I found out and asked her why, feeling kind of disgusted but also massively jealous; she said that parents are supposed to look after you and provide for the best education, or something, and that it's just "right" that they do this to the best of their ability.
Sigh. I wish I had that kind of money.
Sigh. I wish I had that kind of money.
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#7
(Original post by Guy Secretan)
because then you have more money for drinking and partying my parents paid my fees but that was when it was only 1000
because then you have more money for drinking and partying my parents paid my fees but that was when it was only 1000
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(Original post by brendonbackflip)
I guess if you have the money, it makes more sense to get it over and done with instead of having to pay it off for donkeys years. If my parents had a spare £9000 however, I'd rather they'd just use it for my living costs. Though I don't think they'd want to pay for me getting plastered at every opportunity, perhaps parents who spend it on fees are fearful of it being wasted elsewhere?
I guess if you have the money, it makes more sense to get it over and done with instead of having to pay it off for donkeys years. If my parents had a spare £9000 however, I'd rather they'd just use it for my living costs. Though I don't think they'd want to pay for me getting plastered at every opportunity, perhaps parents who spend it on fees are fearful of it being wasted elsewhere?
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#9
(Original post by Bronco2012)
You do? Drinking money comes from the maintenance loan, part time work and any living money your parents give you. Them paying you tuition fees up front would have no effect on your alcohol fund.
You do? Drinking money comes from the maintenance loan, part time work and any living money your parents give you. Them paying you tuition fees up front would have no effect on your alcohol fund.
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#10
(Original post by ooerr)
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
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#11
(Original post by ooerr)
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
I'm not really arguing with this because I don't really see the point in it either. I just don't think its particularly illogical if you do have the spare £9000 floating about.
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#12
tbh I dont think parents should with all the help thats available, not only that it encourages those who just dont wana go to work yet, or just wana go to uni for "the experience" to go for those reasons
Whereas when its gona put them in debt, they may think twice
also uni is a choice, and if you really want to go, youd be more than happy to put up with the repayments.
That being said if a young person couldnt get financial support then I see why parents might choose to pay, I know I would if my "child" desired to go to uni but could not get funding for whatever reasons, but thats just because I want them to have every opportunity available
which most can get under their own funding.
also one last thing, I think its a pretty good step forward in maturing, having to sort and handle your own finances, even if the money is provided for, its a good practice in the lending and repaying that will undoubtebly follow with life,
buying cars, houses and other grand purchases.
Whereas when its gona put them in debt, they may think twice
also uni is a choice, and if you really want to go, youd be more than happy to put up with the repayments.
That being said if a young person couldnt get financial support then I see why parents might choose to pay, I know I would if my "child" desired to go to uni but could not get funding for whatever reasons, but thats just because I want them to have every opportunity available
which most can get under their own funding.
also one last thing, I think its a pretty good step forward in maturing, having to sort and handle your own finances, even if the money is provided for, its a good practice in the lending and repaying that will undoubtebly follow with life,
buying cars, houses and other grand purchases.
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#13
(Original post by Guy Secretan)
well you wouldn't have to use the loan to pay for the fees.
well you wouldn't have to use the loan to pay for the fees.
Certainly if a student has applied for a Maintenance Loan and then finds their parents paying for accommodation, this would free up some entertainment money.
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(Original post by brendonbackflip)
I know how it works, thanks. The point is that you'll see more money if you've already paid off the debts.
I'm not really arguing with this because I don't really see the point in it either. I just don't think its particularly illogical if you do have the spare £9000 floating about.
I know how it works, thanks. The point is that you'll see more money if you've already paid off the debts.
I'm not really arguing with this because I don't really see the point in it either. I just don't think its particularly illogical if you do have the spare £9000 floating about.
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#15
(Original post by Guy Secretan)
well you wouldn't have to use the loan to pay for the fees. Also they paid the accommodation so maybe that's where it came from.
well you wouldn't have to use the loan to pay for the fees. Also they paid the accommodation so maybe that's where it came from.
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#16
(Original post by ooerr)
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
There are certain circumstances when it might be best to get the tuition fee loan e.g. if you're planning to get a degree but then just marry a rich husband, quit work and be a full time mum for the rest of your life, as many people do. If your parents paid your fees up front in that situation, it would just be a waste of their money.
But assuming you're actually going to be working for a significant amount of time in a job with a high enough salary, if your parents are willing to pay your fees for you, you might as well let them.
Though personally, if I just had £27k of my own lying around, I'd still take out the tuition fee loan rather than paying up front, and use my lump sum as a deposit to buy a flat when I start work, or something like that.
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#18
My fees are roughly £3,000 and my parents have paid for all of my other siblings' university costs. My dad had been working for over 30 years, saving money. As well as that he has invested his money in quite a few properties and so has a fair bit of "passive income" as you have it.
Most of my elder siblings now are working in engineering, finance and computing and so on so things have worked out fine for us.
He feels that it's his job to provide opportunities for his children in education and so he does. When I have children, I would like to do the same for them.
Most of my elder siblings now are working in engineering, finance and computing and so on so things have worked out fine for us.
He feels that it's his job to provide opportunities for his children in education and so he does. When I have children, I would like to do the same for them.
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#19
(Original post by ooerr)
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
It's not like you ever see the money. You pay a set percentage of your salary above £15k/£21k (depending which system you're under...) It has no more of an effect on you than paying income tax and national insurance.
According to http://www.thesalarycalculator.co.uk/salary.php
Assuming a £30k salary
With no student loan take-home pay is: £23,218.60
With the £15k or above repayment plan it's: £21,991.45
With the £21k or above repayment plan it's: £22,408.60
So it does have a little bit more effect that tax or NI, but only a little bit.
Although I do agree that it's stupid for parents to pay it, because like you said it's a large chunk of money over a large period and the repayment method means that they might not even have to pay it all back. On the flip-side if they do pay it all back it'll probably be slightly more, (EDIT) although the interest rate is set at the rate of inflation, so in real terms you pay the same amount back.
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#20
(Original post by bellatrixb)
you do end up paying less by paying up front than you would if you relayed your loan over the 30 years, due to interest rates...
you do end up paying less by paying up front than you would if you relayed your loan over the 30 years, due to interest rates...
I agree with the OP - a lot of people don't make a rational decision over this when they use the argument of "don't want that debt hanging over my head".
It's like if you were to buy a house and had the option of taking out a mortgage at 5% for 25 years when you expected the house to appreciate in value by 100% over those 25 years. Would you do it or would you turn it down because you didn't want the debt hanging over you.
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