Whether your kids are tots or about to fledge, the cost of college is a worry. If they are still young, you have time to save. If you have a prospective ‘fresher’, from September 11th, they will know what they will study and where. So how much does a third-level education cost these days, and how can parents and students save money?
Do the maths
The good news for parents is that projected college costs have dropped, albeit marginally, for the first time in a decade, according to a survey by Technological University Dublin (TU Dublin).
Rent was always the biggie. Covid-19 has triggered a move to online tuition with only partial on-site attendance allowed for many courses. This means more students are likely to live at home this year. And with pubs, nightclubs and cinemas curtailed or closed, the cost of student socialising will be less.
Mobile phone costs are slightly down too. The bad news, of course, is that some family incomes have been hit hard by the pandemic. And student summer jobs, once a banker for college money, have been fewer too.
So how much will this year set you back? The average monthly cost of third-level education for students living away from home will be €994 this year, according to the TU Dublin figures. That includes rent, utilities, food, travel, books, clothes, medical expenses, phone and social life. It doesn’t include the student charge.
Do the maths for the nine-month academic year and it’s about €9,000. For those studying in the capital, you’ll need to add at least another €1,000 for a single room there. For many families, the overall bill equates to a second mortgage.
The cost for a student living at home will be significantly less, averaging about €370 a month or €3,300 a year.
Grant scheme
The student grant scheme, the main financial support for students, is divided into maintenance grants, fee grants and the postgraduate contribution. Prospective students have been applying through Student Universal Support Ireland (SUSI) from April – 88,500 have so far, up 4,000 on last year.
Applications are assessed on gross income from all sources in 2019.
The pandemic, however, has thrown a curve ball and your family's income last year may not reflect your present or future position. If an independent applicant or parent has had a negative change in income likely to last for the duration of the course to be studied or the foreseeable future, they can apply to be assessed under "change of circumstances", according to SUSI.
In doing so, the income reference period for the application will be 2020.
Even if you have been awarded a grant, you may still receive an invoice from your college, says Dr Brian Gormley, head of campus life at TU Dublin. Ignore it. "If the student shows us their application for SUSI, they won't have to pay it."
Tax relief
If you are paying third-level fees for your child, you may be entitled to tax back on tuition fees, including the student contribution. You can claim for more than one child too. Tax relief is granted at 20 per cent. However, there is a limit on the amount of fees – €7,000 per course per year – on which you can claim tax relief.
You must factor in “disregard” amounts, which amount to €3,000 for a full-time course and ,€1,500 for a part-time one.
Take Rory. His tuition fees for a full-time course are €4,500 and his student contribution is €3,500 – a total of €8,000. Qualifying fees are capped at €7,000 and when you take away the “disregard” amount, it leaves €4,000. Rory’s mum, who is paying the €8,000, is entitled to tax relief of 20 per cent of the €4,000, which is €800. If you are paying fees for more than one child, you subtract the disregard amount once only.
No relief is available on the student centre levy or administration fees. Check if your child’s course qualifies for relief on Revenue.ie.*
Empty nest
With a virus at play, it has been hard for colleges to be specific about tuition timetabling, but students should try to find out how many days per week they can expect to be on campus. With some colleges offering blended learning, students may be on campus only one or two days a week. In that case, it may be cheaper to live at home and commute, or pay for a room on a nightly basis, rather than renting for a full week.
“We are working with accommodation providers where a student from Mayo or Donegal can get accommodation packages for one, two or three nights a week rather than paying for the full week,” says Gormley. There has been a good response from providers of digs and the university has made deals with local hotels too.
“Instead of paying €200 for a full week, students can come up and stay in a hotel one night a week for a reduced rate of around €65.”
Living away from home is a great education but with lectures moving online, it becomes an expensive lesson. "If you are on campus two days a week, or one week a month, a full-time lease doesn't make sense," says Union of Students in Ireland president Lorna Fitzpatrick. "Shorter-term, more flexible accommodation will be better, but in the private rental market it's a different story."
Covid-19 has brought some price moderation to the market, according to the Residential Tenancies Board. In Dublin, there were 65 per cent more rental ads in June 2020 than in the same month a year ago and there has been just a 0.5 per cent rise in rental prices in the 12 months to June, according to Daft.ie. So rents haven’t inflated as much as previous years.
Dedicated student accommodation, on campus or otherwise, can be among the priciest options. The annual cost was €4,219 last year, according to a survey by Zurich. Private rented accommodation, by comparison, averaged €3,750.
Transport
While those living at home and commuting to college will save on rent, higher transport costs are likely. Full-time third-level students should apply for a student Leap card for discount fares on Go-Ahead Ireland, Dublin Bus, Luas, Bus Éireann, Dart, Irish Rail and local private services such as Wexford Bus, Ashbourne Connect or JJ Kavanagh.
If you’re a regular traveller on Dublin Bus, Luas, Dart or commuter rail services in Dublin, there is a further saving with capping – once you hit the cap, you travel free for the rest of the day or week. Remember, you are eligible for heavily discounted child fares on public transport until you turn 19; so applying for a child Leap card pays off.
To get around your student town, a bike (with a sturdy lock) is probably the most cost-effective investment you will make. For commuters, the €35 annual subscription to Dublin Bikes will get you from the train or bus station to lectures on time. Find the stations closest to your campus on Dublinbikes.ie.
Exams and scholarships
Scholarships don’t just look good on your CV; they can also save you thousands. A range of bursary and scholarship schemes is listed on HEA.ie. These include scholarships for students wishing to study engineering, science, technology and business, as well as supports for economically disadvantaged students or those with a disability. Many higher education institutions also offer their own schemes.
All students should be mindful of the cost of having to repeat end-of-year exams too. While many colleges have waived their repeat fees this year, students of NUI Galway, for example, will pay a flat fee of €295 to repeat this year, even if it's just one exam.
Budgeting
If you’re a student flush with cash, then you’re probably not doing it right. Some level of penury is to be expected. Indeed, learning to manage money is one of the biggest lessons you can take from college. Spending your grant on a flashy new phone in the first week of October won’t feel so clever later on. (You can’t actually eat data.)
Many third-level institutions now have dedicated advisers to help students budget wisely. UCC’s online student budgeting advice service, for example, has useful budgeting tools that set out the cost of everything from a field trip to printing.
As the hospitality industry reels from Covid-19, supplementing a grant or family support with a part-time job won’t be as easy for students this year. “We think about half the number of students will have jobs than did previously,” says Gormley.
The Government has increased college student assistance funding and struggling students should seek this out through their college’s welfare office, student union or chaplain. “Our foundation has also raised money to support students and we have a specific fund for those who may not be able to afford the laptops need for online learning,” says Gormley.
“Even if someone gets a grant from SUSI, it doesn’t cover their rent, let’s be real. It’s not enough,” says Lorna Fitzpatrick. “The student assistance fund can help with one-off costs for lab equipment or books, or if you are on the back-to-education allowance and need help with childcare costs.”
“If you are a student whose family isn’t in a position to support you, don’t keep it to yourself,” says Gormley.
“Let the college know. Every university has a student assistance fund. We can support you if you come forward and let us know.”
* This article was amended on August 18th, 2020
