Personal Loans To Pay For School Fees
Most parents want the best possible start in life for their children and as a result of this, a growing number of parents are looking to a private education, or University for their children in order to give them a better education.
Whilst this is an understandable and commendable attitude to take, this type of education can be rather expensive and with the recent news that the average cost of educating a child has increased by around 5 per cent over the course of the past twelve months, many parents are unable to afford the school fees from their normal income or savings and are forced to take out a personal loan to cover the cost.
According to a new survey conducted by Sainsbury’s finance, somewhere in the region of £37 million worth of personal loans were taken out last year alone, just to pay for school fees and University costs.
The figures have shown that there were around 4,400 personal loans taken out, worth an average amount of around £8,500, for education costs. £12.25 million was taken in loans to pay for school fees, whilst a further £13.56 million was taken in loans to cover the cost of University or college.
With the average family in the UK already having a considerable amount of unsecured personal loan and credit card debt, the additional cost of taking out a personal loan for education purposes can be a great burden on the household financial situation and it is therefore important to try and get the best rate possible on any new loan which is taken out.
Steven Baillie of Sainsbury’s finance said “These rises can be hard to bear in difficult economic times, so it is not surprising to see many people taking out personal loans to help with this cost. Parents and anyone paying for education, such as professional qualifications, need to make sure they are shopping around for the best loan rate available and not simply turning to their current account provider.”
