Parents are paying to help prevent their children graduating from university with debts, a Halifax survey has said today.
Up to 60 per cent of parents would look at alternatives to their children taking out a student loan, with 42 per cent saying that they had offspring at university without one.
Around 31 per cent of parents said that they would work longer to provide the cash while over one in five would consider taking a second job, with Ulster parents more likely by half to do both. Ian Larkin, head of Halifax unsecured personal loans, commented: "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."
Borrowing from the government-backed Student Loans Company is at the rate of inflation to give effective interest-free borrowing.
However, with top up fees now over £3,000 per year, many students face graduating with at least £12,000 of debts, something that many parents do not appear to wish them to have.
If extra work or savings are not an option, many parents are taking out loans instead, making monthly repayments rather than leaving it to their children to borrow.
Most parents it appears are prepared to sacrifice holidays and social life as well as go as far as re-mortgaging their house in a bid to stop their children starting their working lives saddled with debt.To read more about Investment News, click here.
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