The rising cost of education is leading more parents to take out personal loans to fund their children's school fees.
Personal loan provider Sainsbury's Bank estimates that as many as 4,420 personal loans worth over £46 million could be taken out this year to help fund school fees.
According to official figures some 620,000 children are being taught in private schools that can charge annual school fees in excess of £20,000.
However, figures suggest that parents fail to shop around for the best personal loan deal.
Over the past five years, 38 per cent of people that took out a personal loan, failed to shop around for the most competitive interest rate. This resulted in collective overpayment of £1.1 million by personal loan holders.
The number of fee-paying pupils has increased by four percent over the past five years and school fees have risen by 43 per cent over this period.
Therefore it is expected that more parents will be taking out personal loans to help pay for their children’s school fees, commented Rachel Brereton, manager of personal loans at Sainsbury’s Bank.
"Those parents doing this need to make sure that they shop around and find a competitive rate," she said. .
Parents take out personal loans to fund education
Parents take out personal loans to fund education
Mon, 08 Aug 2005
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