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University ‘could leave parents in severe debt’
Monday, August 24th, 2009The parents of children graduating from university could find themselves in debt as a result, an industry expert has said.
According to David White, chief executive of The Children’s Mutual, higher education can cause a true financial strain with lasting effects.
"Often, parents are left with no other option but to dip into their savings or remortgage their house. This can have a serious impact on their own financial futures," he remarked.
Mr White added that setting up trust funds is a good way to combat these problems, stating that parents who save £24 a month could have an account worth £9,750 when their child reaches the age of 18.
Figures from The Children’s Mutual show that the average student requires approximately £42,000 to cover three years in further study.
Recent research from Halifax indicates that although 59 per cent of students claim to be reducing their outgoings, the average spent on living expenses has risen by five per cent since 2008.
By Sarah Adie
