9th June ‘08 - Parents Taking out Secured Loans to Meet Cost of Education
Worries over the standard and choice of state education coupled with the increasing price of the cost of living are prompting large numbers of parents to take out secured loans in order to fund the private schooling of their children.
Researchers from Sainsbury’s Finance have been busy analysing Government statistics and have found that last year nearly 20,000 loans, including many secured loans, were taken out to meet the cost of school tuition fees.
A 6.2% rise in the cost of school fees is another explanation for this phenomenon, with the most recent available figures showing that the average cost of yearly tuition has risen to £11,250.
A spokesperson from Sainsbury’s Finance commented, “A combination of a rise in the cost of living, more children going to private school and the cost of private education rising could lead to more parents taking out loans to help fund their children's education.”
It is anticipated that if the cost of private education continues to rise, so could the size and number of secured loans taken out to meet this expense. The size of average loan taken out for this purpose currently stands at £9,065.