Parents need to save up to £42,000 to cover the living costs of their child through a three-year university degree.

The Higher Education Policy Institute (Hepi) warned families to 'start saving early' to cover the huge 'hidden cost' – which excludes tuition fees – of living on campus.

The Government provides maintenance loans for all students, but in some cases they only cover a quarter of the cost. 

Families with combined incomes of more than £70,000 need to provide an extra £13,865 a year, while even those on lower incomes are required to find £8,405.

Students whose parents cannot find the extra cash end up having to fit their studies around part-time work, jeopardising their grades.

Parents need to save up to £42,000 to cover the living costs of their child through a three-year university degree

Josh Freeman, co-author of the report, said: 'Parents are understandably frustrated that no one tells them how much they should contribute towards their children's living costs at university.

Read More

A prince's university fees are among those paid by £200 million taxpayer-funded scheme for foreign students

'Plenty of people assume the maintenance loan covers everything, but actually it leaves students short by nearly £14,000.

'This hidden cost only starts to bite when students start studying, and they realise they need to do lots of part-time work to cover their costs. It is really important to start saving early.'

For the first time, Hepi calculated the minimum amount a student would need to survive for a year, including rent, bills, food and books – but not tuition fees.

Students away from home outside London would need £18,600, but maintenance loans cover only between £4,767 and £10,227, depending on parental income.

The Higher Education Policy Institute (Hepi) warned families to 'start saving early' to cover the huge 'hidden cost' – which excludes tuition fees – of living on campus (Strock image)

It could mean two parents earning £35,000 each having to save £41,595 for a typical three-year degree, or £125,000 to put three children through this.

The report was produced in partnership with software company TechnologyOne and the Centre for Research in Social Policy at Loughborough University. 

It recommended that maintenance loans be increased, although students could be expected to work full-time during the summer holiday. 

The Department for Education has been contacted for comment.