University fees & School fees

Anyone considering higher education or private education will have to look carefully at the costs of university fees and school fees. Before you enter the world of student loans student grants bursaries awards scholarships or even discounted fees read Moneyextra.coms guide to paying for education now. 

• What will getting a degree cost?
• What help is available with funding a degree course?
• How much will private schooling cost?

What will getting a degree cost?

From September 2006 universities in England and Northern Ireland will be able to charge tuition fees of up to £3000 a year to new students who are beginning their studies. Most universities have signalled their intention to charge the maximum. Source NUS Online 2006.

In fact students going to university in 2006 could see the living costs and university fees of a typical three-year degree course reach as much as £31260. Fidelity Investments suggests that the costs of the same three-year course when the current generation of new born babies is ready to go to university will have risen to £48755! Source Fidelity Investments 04/04/2005. 

And that's just the average. Educational qualifications for the professions and specialist academies for sports, art or drama can be even more expensive. Most professions require longer training periods sometimes up to seven years adding considerably to the cost. If you feel your child might be the next British winner at Wimbledon you'd better be prepared to dig deep into your pocket. Sending them to a tennis academy in Florida could cost around £40000 a year. Source Prudential September 2004. 

The number of students in higher education is set to reach 1435665 in 2006-07 according to the Higher Education Funding Council. Source Higher Education Funding Council January 2006. The forecast increase in all higher education student numbers from 2004-05 to 2008-09 is predicted to be 10.5%.  New entrants into higher education in the 2003-04 academic year reached 269000 up by 9.3% in the last five years. Source National Statistics 14/04/2005. 

The government has said that it wants to ensure that half of all 30-year olds have had the opportunity to benefit from higher education by 2010. Source Prudential September 2004. This is on the face of it an admirable goal. However the reality of the situation is that if you decide that you or your children want to get a degree it is going to cost a lot of money! 

The cost of getting a university education has risen dramatically over the last decade with maintenance grants whittled away and students expected to pay their own way with the help of student loans. The National Union of Students has estimated that over the 2005-06 academic year the average student outside London will rack up a debt of £5664 while those in London will be £6612 in the red. Source NUS Online - 2006.

What help is available with funding a degree course?

From September 2006, no full-time undergraduate will be required to pay fees during their course. Universities may charge up to £3000 a year but any increase in fees is pegged to below the rate of inflation until 2010 at the earliest. Those from lower income households may be eligible for a non-repayable maintenance grant of up to £2700 a year.

The maximum amount of loan available to cover living costs through the Student Loan Company in 2006-07 is £3415 for those living at home £4405 for those living away from home and £6170 for those away from home at a course in London. Up to 75% of the maximum is available to all eligible students regardless of other income. 

In addition to student loans those entering higher education may be eligible for a variety of other assistance including bursaries from the colleges and universities and benefits such as parents learning allowance, child tax credit etc. depending on their circumstances.

For students who start their courses in September 2006 the government will write off any student loan balances but no arrears that remain unpaid 25 years after the liability to repay commences April after the course finishes. This covers both loans for fees and loans for maintenance. 

For more information on the help available contact your local education authority or the Department for Education & Skills helpline 0800 731 9133.

How much will private schooling cost?

Before you and your offspring contemplate higher education you may be considering private schooling. In January 2005 there were 611560 children attending private schools out of a school-age population of 8.275m pupils 7.4% a proportion that has remained little changed since the mid-1990s although there has been a rise in the absolute number of pupils. Source Department for Education and Skills October 2005.

Basic fees vary widely depending on whether schools are educating younger or older children day or boarding and where they are situated. The Independent Schools Council offered the following estimates of fee ranges per school term as at September 2004 Source Independent Schools Council website:
 

2009-03-09 16:52:16 © Moneyextra.com