Loan News Three Quarters Of Parents ‘failing To Save For University Costs’
30 October 2003
Despite students facing debts on leaving university of around £20,000, a new survey has found that three quarters of parents with children under the age of 18 are failing to save for their offspring’s future.
A survey undertaken for ISIS Asset Management by NMG Research revealed that of the 28 per cent of parents and grandparents who are currently making some form of provision, only 48 per cent are doing so to fund education and just four per cent to offset student debt.
The results of the survey coincide with a mass demonstration in London by students campaigning against Government plans to levy top-up fees
Jason Hollands, ISIS head of communications and strategy, said: “In the early sixties, only six per cent of under 21-year olds went to university whereas that figure is now around 43 per cent. The Government’s stated target is to get this figure to 50 per cent.”
“It’s not just student numbers that have rocketed though, the costs of a university education have also risen dramatically thanks to student unsecured loans and tuition fees.”
“If young people start their careers deeply indebted, the higher the likelihood that they will not be in a position to start saving for their own children. The problem spirals,” he added.
The ISIS survey also found that 87 per cent of the 1,000 parents and grandparents surveyed underestimated or did not know the average cost of completing a three-year university course, including living expenses and tuition fees.