Member Article

Parents expect kids to take out loans

Parental help comes in all shapes and sizes when it comes to helping their children out at university. More than half of UK parents expect their offspring to have to take out a student loan to fund their studies at university, instead of getting parental assistance, a survey showed this week.

Around 57% of parents said their child either had or would need to take out a student loan, rising to 71% among parents who work full-time, says Halifax bank. However, only a quarter of parents in the North of England (26%) thought their children would need to rely on this method of funding.

Nearly two-thirds of parents are willing to help finance their child’s studies using money from their salary, while 59% said they would use their savings. More than a third of particularly dedicated parents said they would consider either themselves or their partner getting a job or working longer hours. One in 10 parents said they would take out a loan, and the same proportion would consider remortgaging their house or selling their car.

More than half of those questioned said they would be prepared to give up “anything and everything” to help support their child, although, on the other hand, 16% of parents said they would not make any sacrifices.

Neil Chandler, head of Halifax Unsecured Personal Loans, said: “For most parents, taking your child to university for the first time is a proud but emotional moment. It is important to consider how best to support your child with the minimal amount of strain on your pocket as this commitment is likely to last for several years.”

Unsurprisingly, Mr Chandler then suggested getting a loan from Halifax to help with the costs.

This was posted in Bdaily's Members' News section by Ruth Mitchell .