Your teen might feel ready for the next stage of education but are you prepared to support them financially? We explain exactly what you have to pay and find out whether getting a degree is worth the cost.

Tuition fees, student debt and mounting loans...the newspapers are full of terrifying tales of student debt. The problem is that they are often short of advice and clear information.

Most of us want our children to do well and we'd hate to stand in the way of their education, but exactly how much do parents have to fork out to get their child through college? Here's a straightforward guide to student finances to help you help your kids.

Tuition and top fees explained
Politicians and journalists are always arguing about top up and tuition fees. They usually make them sound like a seriously frightening prospect without mentioning how much they are, who has to pay or when the money is due.

Tuition fees cover the cost of studies. Until now, these fees have been at a capped rate of around £1,100. From 2006, universities can charge an additional amount, taking the total cost to a maximum of £3000. These are referred to as 'top up fees'. So, the amount a student needs to pay for tuition will vary from course to course. Science degrees, for example, may be more expensive as they require more equipment.

This money does not have to be paid by the students or parents either before or during their time at university. Your Local Education Authority (LEA) will pay your child's tuition fees, and your child won't need to pay them back until they are earning over a certain amount. The interest rate charged is linked to inflation so that the money your child will repay is the same in real terms as the money they originally borrowed.

Will my child get a grant?
The higher education grant is given to students from lower income families to help pay for their living costs while they study. The amount of help your child will be assessed on your or your household income. Student grants never have to be paid back.

In 2004/05 the Higher Education grant was worth up to £1,000 a year. The amount a student receives depends on their family's income. If this came to £15,200 or less, the student was entitled to the full amount of grant. If the income was between £15,201 and £21,185, students receive a partial grant. If the income was over £21,185 students did not receive a grant.

Should they get a student loan?
A student loan is money paid out to students to help them pay for living costs. The loans are managed by the Student Loans Company. As they are not commercial loans, they are one of the cheapest ways to borrow money.

The maximum amount of loan your child can get is £5050 if they study in London, and don't live with their family. For students who live away from home but study outside of London, they can receive up to £4095. Whether your child gets the full amount of student loan depends on your income and the amount of maintenance grant they get. All full-time students are entitled to 75% of their student loan, regardless of their parents' income.

It does sound like a lot of money, but students don't have to pay it back until they are earning above a certain salary. At the moment, if they never earn more than £15,000 a year, then they will never have to pay back the loan. Repayments depend on the amount graduates earn, so it should always be affordable.

So, is it all worth it?
Well, with tuition fees and student loans your child may well finish their education with a substantial amount of debt as well as a degree. However, in the long run it probably is worth helping your kid continue in education.

The difference in earning power between a graduate compared to that of someone who didn't go to higher education is increasing all the time: people with higher education qualifications, on average, earn 50% more than those without. So your child should be able to pay back their student debts, thanks to their degree. If they never earn very much, then they won't have to pay back the money.

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