University – and the Costs Associated with Going
As we near the end of the summer and another cohort of freshers are set to embark on three or more years of studying and making memories, we focus on the costs associated with university.
From course fees to the cost of living in student accommodation (and everything in between), we share a rough guide for students-to-be (and their parents and caregivers) to help you save some funds if your son or daughter is heading there in September 2025 or beyond.
How much does uni in the UK cost?
If you’re wondering how much money you might need to save if your son or daughter is heading to university next year, this BBC article provides some figures for 2024. Of course, these could alter as we head into 2025, but the piece provides a rough guide, nonetheless.
Tuition fees
While most students take out loans to pay for their undergraduate tuition or daily living costs, the parents of some young adults may instead opt to foot the bill.
The maximum annual cost for UK students varies. In England and Wales, states the BBC article, it’s £9,250.
Those studying in Northern Ireland may pay up to £4,750, while tuition fees are free for the majority of Scottish students.
Taking the top-end fee for tuition in England into account, parents who are beginning to save this September (ahead of next September) may have to put as much as £770 a month aside. That’s if they’re starting from zero in their son or daughter’s tuition fees savings pot.
Student accommodation
Again, these costs can vary widely. Student rents have risen drastically in recent years, too, according to data from 10 university towns and cities.
As outlined in the BBC article, average annual rent rose from £6,520 in 2021-22 to £7,475 in 2023-24, as revealed via research by the Higher Education Policy Institute (Hepi) and housing charity Unipol. The figures do not include London and Edinburgh, though.
Student rents were particularly high, states the BBC, in cities like Bristol and Nottingham, where the average cost was £9,200 and £8,427 respectively.
Taking the average cost of accommodation in Nottingham into account (to use one example), parents who are planning to start a savings account from scratch for their September ’25 uni-goer may need to put aside around £702 a month, from this September, right through to the beginning of next September.
Is your son or daughter eligible for a student loan?
While it may seem like you have to put a hefty amount aside ahead of your child’s enrolment to university, all may not be lost, as most UK students are eligible for a tuition fee loan.
Maintenance loans are available for living costs, too. The latter are means-tested, which means the amount each student will get depends on their family's income.
What is the maximum maintenance loan if you live away from home and outside London? This ranges from £10,227 in England to £6,776 in Northern Ireland, in 2024/25. So, you see, if your son or daughter is part-paying for either student accommodation or tuition fees, this should lighten the load somewhat.
Be aware, however, that interest is charged on the total loan from the day it is taken out, with eligibility and repayment rules differing across the UK.
For those interested in taking out a student loan, the Gov.uk site features a wealth of information to bring you up to speed with the Student Loans Company process.
What about the cost-of-living crisis; how will it affect students’ finances?
Of course, the cost-of-living crisis may play a role in the overall health of both parents’, guardians’ and students’ finances. It’s why you might be keen to save in preparation for your son or daughter’s university costs for 2025 and beyond.
Perhaps you'd like to begin saving after covering this year's fees and accommodation? If so, we have a range of savings products* here on our site. Students-to-be might also wish to open an account with us, too – just view our products to work out which is the best product for you.
Avoiding debt while at university
There’s no denying that university can be a costly time but there’s plenty of advice and guidance here on the ‘Knowledge Hub’ of our site, to help you better manage your budget, and save for unexpected bills. While the budgeting piece was written ahead of 2024, plenty of the advice can be put into practice anytime. You’ll find a host of fun money saving challenges you can try as well.
Meanwhile, the team over at Compare the Market shares some advice on how you can avoid credit, which should also stand you in good stead while you’re studying away from home.
Take a look at this piece: Financial Advice You’d Give Your Younger Self, too. In it, people who’ve already been to university (and some who haven’t) share what they’d have done differently money-wise if they could turn back time.
Until next time…
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