Parents dig deep to avoid student debt

As a new generation of students prepares itself for its first taste of university top-up fees, more parents say they are ready to shoulder much of the financial burden of education.

Research commissioned by Halifax has revealed that 42 per cent of parents said that they were prepared to cover their child’s living costs rather than see them borrow.

More than 60 per cent of parents said that they would consider the alternatives, including borrowing at a best rate themselves to avoid their child funding their university years through debt.

“Our research shows that many parents would prefer to take on the financial responsibilities of funding their children through university rather than them take on a student loan,” said Ian Larkin of Halifax.

“A homeowner loan is one of the ways parents may choose to help finance their children’s university education.

“Fixed monthly repayments and a choice of loan term can ease the burden and help budgeting,” he added.

Due to the relatively recent arrival of student fees and the abolition of grants, 73 per cent of parents said that they had never saved for their children’s education.

© Adfero Ltd

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