With AS/A Level results due tomorrow, 15th August, and GCSEs next week, it’s the perfect time to recap the current support available from the Isle of Man Government.
I hope this is useful for parents whose children are likely to attend university in the coming years. Good luck to all, whether you’re uni-bound or about to enter the world of work!
Tuition fees
Tuition fees are currently up to £9,250 per year. All Isle of Man resident students must pay at least £2,500 per year towards their tuition fees.
A government loan of £7,500 is potentially available to fund a three-year course, with repayments starting once the student’s annual income reaches £25,000.
The Government’s contribution of £6,750 is reduced when the family’s gross annual income exceeds £112,000. Where income exceeds £132,000, no support is available.
Maintenance grants
Maintenance grants are intended to help with living costs.
An annual maintenance grant of up to £8,100 (£8,640 for London/overseas) may be available. However, this is also means-tested, but at a much lower rate.
Income over £21,547 will see a proportionate reduction, and no support is available where income exceeds £70,145 (or £73,386 for London/overseas).
The payment table can be found here: Maintenance Grants Means Testing Table. Examples of how to calculate the fee can be found here: How to calculate the amount of maintenance.
Reality
Actual living costs vary greatly depending on location and lifestyle.
Published university estimates are now in the region of £12,000+ per academic year. The rapid increase in the last couple of years is primarily down to the cost of living increases we have all been experiencing.
For Manx students, additional consideration should be given to the cost of travel on/off island and other accommodation or storage costs between terms.
What does this mean?
Personal loans are an option. Students might also consider getting a part-time job to supplement their income.
But for those looking to save in advance, it helps to know the numbers.
For those entitled to maximum Government support and who take a student loan for their fees, parents need to be saving enough to support additional living costs, travel expenses (including the initial move-over), and an emergency pot for unexpected expenses, sports/social trips, etc., for the duration of the course.
For those not entitled to government support, £20,000+ per year is a good starting point.
Savings need to be more substantial for parents with more than one child expected to be simultaneously at university, those looking to study abroad, or those considering longer courses/Master’s, etc.
It might be preferable to save enough not to rely entirely on government support at the current generous levels.
At worst, any excess savings could easily be repurposed to help them get on the property ladder—or to enjoy a bit of role reversal and treat yourself to a lovely relaxing holiday while your child is studying hard!
Please get in touch with us if you want to discuss the benefits of making a financial plan for your family’s future or our regular investment solutions.
