A new survey from Sainsburys Finance has revealed that more than 40 per cent of parents have taken out a loan or used their savings to cover the cost of their children’s university education . Parents have admitted to spending as much as £20,000 on higher education for their children, prompting analysts to remind parents of the dangers of getting into serious debt . With a depleted savings account, or significant personal loan repayments, parents could find themselves with a lack of financial security.
The survey also revealed that one in ten parents will spend over £20,000 on helping their children through university education, whilst those who have not taken out a loan admit that they are seriously considering doing so. Financial experts have advised parents that selling underachieving endowment policies may be a better alternative to taking out a personal loan . Rather than surrendering an endowment policy to an insurance company, specialist companies such as aap guarantee to always pay more for such policies.
Head of loans at Sainsbury’s Finance, Steven Baillie, advised parents to shop around for the best deal when taking out a loan .





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