1. Student loans (for Tuition Fees and Living Costs)
These loans are provided by the Government through the Student Loans Company (SLC). They are the cheapest form of money your son/daughter can borrow long term they only start repaying when they are in work.
The above loans are to pay for tuition fees and help towards day to day living costs such as rent and travel. The really important thing to understand is there’s nothing to repay until your child leaves University and is earning over £21,000. Even then they only pay a proportion of their income.
2. Family Assistance
As a parent, you might want to help your child out, yet the system is designed so that money should be available for your child to support themselves so you don’t risk putting yourself into debt. There may be a better and more financially sound way you can help.
You could help with money put towards course books or stocking up the kitchen cupboard at the start of term (if they’re living away from home). Helping your son/daughter with the practicalities of student life could be very welcome.
It is vital that students are able to differentiate between “good” and “bad” debt. It may sound bizarre, but some debts are much better than others – all debts are not the same! Below is a guide to the different types of borrowing for students: