University Fees Funding

November 2014


According to the National Union of Students the average student expenditure is £22,189 per year at the moment.

This includes tuition fees, accommodation and living costs. That’s equivalent to approximately £67,000 for a three year course.

For a 12 year old now that means about £77,200 assuming inflation at 2.50%.

There are different ways for parents and grandparents to assist with this future cost in a tax efficient way.

Offshore investment bonds are even more attractive now the savings rate tax band will be £5,000, enabling up to £15,500 of chargeable gains to be realised each year free of tax for non-taxpaying students.

Future access to pension funds may also be another funding source for parents/grandparents over age 55 in some circumstances.

NISAs and JISAs (Junior ISAs) also have their uses but planning is the key.

Student loans are available but interest is charged on a variable basis but currently not more than 3% over the rate of inflation. Regular repayments will eventually be taken from earnings by HMRC in the PAYE system.

These loans can be repaid early so there is a possibility that they could be used as an interim funding method giving time for savings to accrue or money from other sources to be released in the course of time.

For more information, please contact Andrew Dickson or Kevin Froggatt on 01379 783272 or email

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