Parents - Loans

Loans of up to £4,590 a year are available to help meet living costs of students, with repayments linked to the student's annual income after leaving higher education. In 2000/2001, three quarters of the maximum loan will be available to all eligible students under the age of 50 and to those aged 50 to 54 who are planning to return to work after studying.

Whether the student gets the remaining quarter depends on the income of their family. In 2000/2001 the maximum loan for a first-year student living away from home and studying outside London is £3,725 (£4,590 for those studying in London; £2,950 for those living at their parents' home).

Again, more details are given in the leaflet Financial Support for Higher Education Students in 2000/2001, which is available from the DfEE's website, or by calling free on 0800 731 9133 or from your Local Education Authority.Although it's advisable, as a parent, to give as much financial help to your son or daughter whilst they are at university (and bearing in mind, the average student spends more than £1,000 more per year than their allocated budget), be careful not to be too generous. A typical way to help without having your money spent on frivolities is to earmark the money you give your student to pay for their rent or for their bills.

A common and very simple way of doing this is to get your child's rent taken directly out of your account by direct debit. That way you are sure that your child has a decent roof over their heads and will never have to sleep rough, and that your money is going towards something useful.