Parents urged to shop around for children’s university loans
With the soaring cost of a university education Sainsbury's Bank has urged parents to shop around when looking for a personal loan.
As many universities hike their tuition fees from £1,175 to around £3,000 this academic year, Sainsbury's Bank has estimated that the cost of living for the average student is set to rise by between 17 and 21 per cent.
In addition to student loans a majority of students are forced to rely on parents to help them meet the costs of university.
However, few parents can afford to fund their child, or children, to the full cost of their needs and, as a result, are forced to turn to personal loans.
Indeed, Sainsbury's Bank has forecast that a massive £53.8 million will be taken out in personal loans to cover the cost of university, the majority by parents.
But the bank has cautioned any parents considering taking out a personal loan to help fund their child's university studies to shop around for the most competitive rate, as failing to do so can work out considerably more expensive.
Steven Baillie, loans manager at Sainsbury's Bank, said: "As students go back to university, many will face a significant increase in their living expenses. As well as students taking on paid employment to help cover this cost, some of their parents are also taking out personal loans to help.
"However, people need to ensure that if they are going to do this, they shop around for a competitive rate."
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