Parents looking to meet the costs of sending their children to university should consider the impact that doing so may have on their finances, new figures show.
In research carried out by Halifax, some 57 per cent of mums and dads report that their children have already taken out, or will need to apply for a loan to help fund the cost of entering higher education. Consequently it appears that many parents are looking to meet university expenses themselves, as 31 per cent state that any funding they provide would negate the need for their child to get a student loan.
The figures showed that only 26 per cent of respondents living in the north of England claim that their offspring will have to opt for a student loan. On the other hand, those from Northern Ireland and the Yorkshire and Humberside region have their eyes set on opting for a student loan the most, as 93 and 78 per cent of those parents respectively claim their child intends to do so
Commenting on the figures, Neil Chandler, head of Halifax Unsecured Personal Loans, said: "For most parents, taking your child to university for the first time is a proud but emotional moment. It is important to consider how best to support your child with the minimal amount of strain on your pocket as this commitment is likely to last for several years. Often there are many up-front costs such as paying for accommodation and buying books."
Research from the financial services firm also showed that the majority of parents (63 per cent) are set to use money from their salary to help meet education expenses, as 59 per cent take out cash from savings accounts. Meanwhile, over one in ten (11 per cent) parents are aiming to take out an unsecured personal loan as a means of meeting such costs. In addition the study revealed that ten per cent are considering remortgaging their property, with the same proportion thinking about selling the car. Consumers living in Northern Ireland are especially looking to take out a personal loan to fund tuition costs as 24 per cent of parents in the principality are considering doing so, compared to five per cent of people from Scotland.
Many parents are also looking to put off future spending plans as they are willing to make a number of financial sacrifices to help their children, with some 53 per cent claiming they are prepared to give up "anything and everything" in a bid to fund university costs. An estimated two-thirds (67 per cent) of consumers are ready to go without a new kitchen or bathroom, while 66 per cent are set to postpone getting a new conservatory, with a competitively-priced home improvement loan a potentially wise option for people wishing to make such renovations in the future.
As a result, applying for a low-rate personal loan could well be an advisable way for consumers to help fund the expense of sending their child off to university. Earlier this year, Frances Walker, spokesperson for the Consumer Credit Counselling Service, reported that the majority of Britons use loans and other forms of credit wisely. However, she stated that more borrowers need to use credit "sensibly" and ensure that they do not encounter difficulties in making repayments.
Author Resource:-
Abbi Rouse writes for AllAboutLoans.co.uk, an online loans comparison site, visit us today for information on all loan topics including cheap loans applications and loans sourcing from all leading UK providers.
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