As school fees rose on average by 6.2% last year to around £11,250(1), Sainsbury’s Finance expects to see a rise in personal loan applications from parents looking to finance private education for their children. Last year, Sainsbury’s Finance estimates that around 18,000 UK loans worth an estimated £165 million were taken out for this reason(2). The average size of loan taken out with Sainsbury’s Finance for school fees is £9,065.
Steven Baillie, Head of Loans, Sainsbury’s Finance said: "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. Parents need to make sure they are shopping around for the best loan rate available and not simply turning to their current account provider."
Sainsbury’s Finance analysis of Government data reveals that households are increasingly spending more on education fees. It estimates that in 2006, the latest statistics available, total UK household expenditure on education fees was £8.89 billion. The average annual figure for the period 2002/3 – 2004/05 was £6.73 billion – a difference of £2.16 billion or 32%.
Sainsbury’s Finance offers loan rates starting at 7.3% APR typical. Customers can choose to make no repayments for the first three months, receive an instant decision and have their money transferred directly into their bank account.
For further information call 0800 169 8502, log onto www.sainsburysbank.co.uk or pick up a leaflet in your Sainsbury’s supermarket.
(1) Figures published in the Independent Schools Council annual survey, April 2008
(2) Based on Sainsbury’s Bank personal loans data.
(3) Based on analysis of ONS Family Spending report 2007