Parents in the UK are increasingly applying for loans to help pay for rising independent school fees, a new study has revealed.
According Sainsbury's Finance analysis of Government data, around 18,000 UK loans worth an estimated £165 million were taken out last year to cover school fees, which have risen a record 6.2 per cent to around £11,250 in the last twelve months.
The company found that the average loan taken out to finance private education was for £9,065, with experts claiming that loan applications will rise in coming years as parents struggle to cope with rising energy, fuel and food bills .
Steven Baillie, head of loans at 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."
The findings come after Chris Woodhead, the former chief inspector of schools, warned last month that some parents were being ripped off as schools spent money on "five-star facilities" with little education benefit .
But the Independent Schools Council responded by insisting that increases are due to staffing costs, with class sizes in the independent sector considerably smaller than state schools .
The Sainsbury's Finance study found that total UK household expenditure on education fees in 2006 reached £8.89 billion – an increase of £2.16bn (32 per cent) on the average figure reported from 2002 to 20005.
Increase In Loan Applications To Cover School Fees
Increase In Loan Applications To Cover School Fees
Wed, 11 Jun 2008
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