PARENTS across Scotland have another month of keeping their fingers crossed before they find out whether their children have got the results they need for university. Once the euphoria of making the grade has subsided, concern about how to pay for it all will kick in.
The cost can be crippling. A third of today's students have considered abandoning their studies because of financial strain, according to insurance giant Prudential. Little wonder, as separate research from the Educational Policy Institute found that
the UK is the third most expensive place in the world to go to university.
Scotland will not be following England in allowing its universities to charge up to £3,000 a year for those beginning study from 2006. But parents and students still have to find £2,000 to pay the graduate endowment, not to mention thousands of pounds more to cover the cost of living.
Once the burden of typical four-year courses is thrown into the equation, the cost of a Scottish education can be high.
Loans are available from both the government and banks to see students through, but for many this will mean emerging into adult life with mountains of debt.
The Student Awards Agency for Scotland has granted almost 91,000 students loans worth more than £223m to date. Barclays Bank found that, as well as student loans, 53% of students borrowed an average of £4,142 from their banks or building societies. One in four received handouts worth an average of £2,428 from family members during their time at university.
Melanie Ward, the president of the National Union of Students in Scotland, said: "I think most students underestimate the amount of debt they will leave university with, which will be above £13,000."
Those from poorer backgrounds may qualify for a Young Students' Bursary. This will pay a maximum of £2,395 to those whose families have an annual income of less than £17,500, while there is tapered support for those from households with income up to £31,000. Funds are also available to help single parents and disabled students.
Most universities south of the Border will charge annual top-up fees of £3,000 from 2006, although fees at a small number of institutions will be less. Leeds Metropolitan, for example, will charge £2,000 to cover tuition.
The Scottish Executive also gives small grants (up to £500) to help Scots studying elsewhere in the UK.
Cost of living ALL the hype about top-up fees has obscured the fact that while undoubtedly a burden, at present they account for only around 15% of the total bill racked up for a university education, according to the Children's Mutual Society.
Barclays Bank believes it will cost £33,000 to put a child through university in England and Wales once top-up fees come in.
However, Scottish degree courses last four years rather than three. Once an extra year of living costs has been factored in, Barclays' figure may not be that wide of the mark for Scottish students choosing to study in Scotland.
In an ideal world, students would not have to consider the cost of living when deciding where to study. But figures from the Royal Bank of Scotland show it can be up to £1,100 a year cheaper to study in Glasgow than in the UK's most expensive university town of Durham.
Student loan scheme FOR those entering university this year, the amount of student loan available will depend on where you live as well as where you study.
For Scottish students studying in Scotland, who choose to live at home with their parents, the amount available is £545 to £3,320. Those living in rented accommodation can get between £830 and £4,195.
Scottish students studying in the rest of the UK are eligible for a higher level of loan. For those living with relatives it is £1,720 to £3,320, while those living in rented accommodation can get between £2,010 and £4,195.
Those studying in London can borrow the most - from £2,170 to £5,175. Interest is set annually to reflect inflation, and will be 2.5% for the 2005-6 academic year.
Once they have graduated and are earning at least £15,000, the Student Loan Company expects borrowers to make repayments equivalent to 9% of their annual income over £15,000. So someone earning £20,000 a year would have monthly repayments of £37.50 until their loan was paid off - although repayments will rise with income until the debt is repaid.
Letting someone else pick up the tab A NUMBER of schemes exist that will pay all, or part, of the cost. The army runs various undergraduate bursary programmes, covering everything from nurses to dentists.
In exchange for help with university costs, students have to do a placement year while at university, and a one-year placement as an army officer after graduating.
There are also schemes which write off the debts of those entering the teaching profession - but crucially only for those teaching in England and in certain subjects.
Declaring bankruptcy RESEARCH from credit reporting agency Checkmyfile.com showed that the number of students declaring themselves bankrupt tripled in 2004.
However, with the Scottish Executive considering reducing the number of years a person has to spend in sequestration, the company is warning students that bankruptcy is not a free pass from repaying debts. Indeed, it could seriously damage career prospects. Anyone thinking about a career in financial services may find themselves excluded before they begin if they opt for bankruptcy as a way out of student debt. Banks and other companies regulated by the Financial Services Authority have a legal obligation to check into a potential employee's financial background.
A poor credit history, demonstrating an inability to manage personal finances, is unlikely to make for a glowing career reference for a job involving the handling of money.
Some good news THERE is good news for students who already have a place at university for 2005 but want to take a year out.
Provided they defer before the start of term, they will not be subject to the new top-up regime, even though they will commence studying in 2006.
Next week we'll look at how parents, grandparents and students can plan ahead to keep debt to a minimum
Case study
A study of economics on a limited budget
LEANNE Sawoky was more aware than most about the cost of a university education when she decided to study in her home town of Glasgow, rather than Aberdeen.
Sawoky explains: "I have an older sister so I knew I would need a part-time job to get me through college.
"I was offered a place at Robert Gordon's but wasn't sure if I could get a job up there. Without one it was out of the question, because of the extra cost of accommodation."
She chose Strathclyde University so she could live with her parents, and has just finished her third year studying politics and economics.
She has helped keep debts in check by working part-time at a call centre,
earning around £250 a month in term time and £1,000 during the holidays. She has borrowed money using her Royal Bank of Scotland overdraft facility on its student account.
She says: "They increase your overdraft bit by bit, which I think is a good idea. If I had had it all at once I might have gone mad and spent it.
"When I first got my student loan and it was £500 I thought it was such a lot - especially when you don't know how to manage money."
She bounced a direct debit in the early days at university, but the bank talked her through budgeting and refunded the charges for missing the direct debit.
