Sending your child to university is a significant financial commitment, and one which creates concerns for several parents who worry about the expense of paying for university.
This is especially the case for single and divorced parents with whom the child lives with, who feel they are expected to cover their child’s entire university bill themselves. In these circumstances, it is worth considering whether your former spouse or partner could contribute to these expenses.
Of course, parents are not expected to single-handedly cover the entire cost of university, as student maintenance loans are available to all students to cover the course fees, as well as the cost of living.
Student maintenance loans provide for a maximum of £9,250; however, this is based on a means-test of the entire household residual income and is therefore subject to reductions starting at a family income of above £25,000.
This calculation works on the implicit expectation that all earning individuals in the household will make up the shortfall – also known as the ‘parental contribution’. Because of this, parents could be expected to contribute over £5,000 per year.
As a result, many students are left with reduced maintenance loans which are not enough to cover their cost of living, and parents are expected to fork out thousands of pounds, having been unaware of the implicit expectation that they will be expected to foot the rest of the bill.
So, What if I am a Single Parent or Divorced?
As many parents are already aware, child maintenance which is calculated by the CMS, is payable until the child reaches 16 (or 19 if they are completing A-Levels or similar education).
At this point, there is an assumption that the non-resident parent’s obligation to financially support his/her child ends. However, some parents may include in their divorce or separation settlement provisions that child maintenance shall continue until the end of the child’s tertiary education, especially if their children are nearing this time in their lives.
If there is no agreement between parents about maintenance for university, it is possible for the court to make an order where the CMS cannot do so, for periodical payments to continue to provide maintenance during the child’s higher education course.
If there is a child maintenance order in force already, a parent can go back to court before the child is 16 to apply for an extension for maintenance to include the first course of tertiary education.
If you have young children and are receiving child maintenance, the issue of university may seem like a long way off and something that is not worth considering at this time. However, it may be a good idea to consider the possibility of your child attending university and raise the issue of university payments sooner rather than later. This would avoid having to go back to court later to apply for an order or extension of maintenance.
For more information and to find out how we can help you, please contact us on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.