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University costs planning

I'm getting a lot of queries about planning for grandchildren's university fees. ( Isn't everybody?)

The cost of putting a kid or two through university is obviously a bit of a moving target , but I'd still like to do some fuzzy sensitivity analysis (ok  20 minutes with a spreadsheet) to see whether my clients are likely to be on track.

I've got basic current cost figures and my IFA is sorting out growth figures and inflation rates.

However, does anyone have a view as to what the price rise pattern for university fees is likely to be ? Private school fees were notorious for rising faster than RPI in the past but obviously university fees are going to be a bit different because the universities aren't free to increase prices over £10K unless the government lets them.  .

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12th Sep 2011 13:27

Uni fees

I would say all bets off on this one - if you had done this 5 years ago would you have predicted 9k a year from 2012?

It depends how old the children are. I think we will see huge changes in the structure of universities in the next few years - so in 10 years' time it could be unimaginably different to today. I personally think many courses and some universities will go to the wall and that others will find a mechanism to become totally private.

You might also consider how the actual loan system works (I don't pretend to grasp it in full) and whether grandparents might do better to leave money to children in their will to repay any outstanding loan. After all the children may never earn enough to pay the loan back - or go overseas.

 

 

 

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