University costs set to reach £33,000

28 January 2004
University is set to cost as much as £33,000 per student, a new report claims.

Data produced by F&C Management shows that parents need to save up to £86 a month from the birth of a child to the age of 18, in order to pay for their higher education.

Last night the government narrowly escaped defeat after a Commons vote on the introduction of top-up fees for third level education.

The National Union of Students estimates that the average cost of a three-year degree currently stands at just over £24,000.

When an extra £3,000 per year of top-up fees is added to this, the total cost could rise to £33,000. The figure is based on a standard growth rate of six per cent.

F & C Management advises that the amount saved monthly should be reviewed regularly as the cost of a university education will rise year-on-year.

Georgette Harrison, director and head of UK Retail Marketing at F&C Management, commented: "There are several ways in which parents can start saving to help make their child's life easier.

"The important thing is to start saving as early as possible. Eighteen years sounds a long way away, but even by putting a little away each month, parents will at least be able to contribute something to these costs."

F & C points out that the stockmarket can provide extra growth over the long term compared with a deposit account, but consumers need to be aware that the value of investments can fall as well as rise and they may not get back the full amount invested.