University Fees Funding

12 March, 2015 | News

Most Universities are now charging £9,000 a year in tuition fees meaning a large level of debt for most graduates. For parents who want to help their children through university it really pays to start early.

If you were to save for university fees in 18 years time, assuming university fees increase by 2.5% each year, you would need around £42,000 to cover the equivalent of today’s 3 years university fees at £9,000 per year.

In order to have this sum of money in 18 years time you would need to save £120 per month for 18 years.

If you only had 10 years you would need around £34,600. To save this level of money in 10 years you would need to save around £225 per month.  Both of these calculations assume that net returns of 5% per annum are achieved over the term.

It isn’t all bad news for students who need to use student loans to fund their way through university. You only repay when you start to earn over £21,000, at that point you repay 9% of your earnings over the threshold. If you have any outstanding debts after 30 years, the debt is wiped.

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