Education Loans
Education by a loan
Summary: Private education is very costly. If it is possible that it may of necessity be needed for your children, you need to do some investigations at the earliest opportunity to avoid an upsetting last minute panic.
Is your local school unlikely to meet the needs of your children? Are they being pushed into your second choice of state school? The names of the best schools in a given area are generally well known to parents of prospective pupils, and as a result these schools soon become over subscribed and have to tighten up on the criteria which they use to define their catchment area.
Education Loan News
Borrowing money to fund your education.So if your answer to either of the above questions is 'yes', you will be following the route taken by many parents if you are considering private education for them…
The Independent Schools Council (ISC) tells us that virtually a quarter of the total number of children at independent schools are from homes in areas where the average income does not come up to, or is only equal to the national average. With fees for a term at boarding school at £6,646 or for a term at day school at £2,970 on average, it follows that many parents are struggling to fund their children's education. Nor do the costs end there; travel to day school has to be paid for, and day or boarding pupils will require uniforms, extra books, sports kit - even the usual school trips can be more expensive with the destinations further afield to cover specific educational targets.
One of the real problems is that many parents have not decided on private education as a target for their children until they are in effect forced into it. This means that no attempt has been made to save in advance of the need, so funding has to be found at the last minute.
Scholarships and bursaries can be a big help but availability of these is very limited, and at best they usually only cover a part of the cost. Paying fees and other costs out of income can be a difficult option, but is the only one available to 71% of parents according to the ISC. This results in a reduced standard of living, with unnecessary expenditure such as a new car or holidays cut to the bone; in addition it often results in a return to work for mothers who hoped to spend more time at home with their children.
However, few parents can cover an annual cost of around £20,000 or even £9,000 out of income alone, and it becomes necessary to resort to debt. The loan can be in the form of straightforward borrowing, but bearing in mind the period over which funding will be required it may be more practical to extend the mortgage borrowing.
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