If your child or grandchild is thinking about university, you might be wondering how to best support them both emotionally and financially. The truth is, higher education comes with a significant price tag. On average, students in the UK leave university with over £45,000 in debt*. Between tuition fees, accommodation, food, transport, and all the extras, the numbers add up quickly.
This may sound daunting, but there’s good news. With a little forward planning, you can give your loved ones the support they need, without putting your own financial wellbeing at risk. The key is to start early, plan realistically, and stay informed about your options.
In England and Wales, tuition fees for courses starting this September will be £9,535 a year. In Northern Ireland, they’re slightly lower at £4,855. Scottish students don’t pay tuition fees if they’re studying at a Scottish university. But tuition is just one part of the picture. Living costs also need to be taken into account. Rent, food, utility bills, transport, and course materials all come into play. Then there are the extras, things like sports clubs, societies, the occasional train ticket home, or replacing a broken laptop.
So, how can parents and grandparents prepare? One of the most effective approaches is to begin saving early. Junior ISAs, or JISAs, allow you to save up to £9,000 each year, tax-free, for each child. These accounts can be a great way to build up a pot of money over time. However, it's worth knowing that the funds legally pass to the child when they turn 18. At that point, how the money is used is entirely up to them which may not always align with your original intention.
Another flexible option is to use a regular ISA. All UK adults have an annual ISA allowance of £20,000. You can choose a cash ISA for low-risk saving, or a stocks and shares ISA for the potential of higher long-term returns. Any gains made within an ISA are free from capital gains tax, and there’s no income tax on withdrawals or interest earned. A key benefit here is that you, as the account holder, remain in control of how and when the funds are used. If your child decides university isn’t the right path after all, the money can be redirected for future support.
Some families also find that regular savings accounts offer a simple way to build funds gradually. These accounts can help encourage consistent saving habits and demonstrate how compound interest works over time. Even small monthly deposits can add up to a meaningful sum by the time your child is ready for university.
Of course, many students will still need to apply for financial support. The Student Loans Company provides loans to cover tuition fees and offers maintenance loans to help with day-to-day costs. These maintenance loans are means-tested and depend on your household income. It’s important to know that student loans work differently from other types of debt. Repayments are based on your child’s future income, not the size of the loan. Once they begin earning over a certain threshold, a fixed percentage is taken from their salary each month. That means whether they owe £10,000 or £60,000, the monthly payment is the same so long as they’re earning the same amount.
In addition to loans, it's worth exploring grants, bursaries, and scholarships. Many universities offer their own funding, especially for students from lower-income households. Online resources like UCAS and the Scholarship Hub UK make it easier to find available opportunities.
Having an open conversation with your child about university finances can go a long way. Be honest about what you’re able to contribute and involve them in the budgeting process. Talk through how much university might cost, what support is available, and how student loans work. These conversations help set realistic expectations and empower them to make thoughtful financial decisions.
There are also a few common pitfalls to be aware of. Some families assume student loans will cover all expenses, but in higher-cost areas, that’s rarely the case. Don’t forget about the summer months either - student loans typically stop in June and don’t restart until September, leaving a funding gap in July and August. Lastly, it’s important to keep track of deadlines. To guarantee funding in time for the start of the academic year, student finance applications should be submitted by May or June of Year 13.
At the end of the day, we know how important it is for you to support your family and we also understand how overwhelming financial planning can feel. That's where we come in. Whether you're looking to build up savings, explore tax-efficient investment options, or protect your own financial future while helping others, we’re here to guide you with straightforward, personal advice. You don’t need to do this alone.
Planning today can bring peace of mind tomorrow, not just for your child’s education, but for your long-term goals too. Let’s have a conversation about how we can make that happen.
