Graduates 'a financial drain on parents'

15/09/2009

Britain's students are receiving a lot of financial help from their family, with some parents even taking out unsecured loans to fund their children's studies.

According to a new survey from Sainsbury's Finance, a majority (53 per cent) of undergraduate students will get some form of assistance from their parents this year.

In all, around £5.3 billion is thought to be contributed in this way.

Around one in 50 students said that their parents were either planning to take out a loan or had done so already in order to help them out.

Meanwhile, just under one in six had cut accommodation costs for themselves by choosing a place of study that is close to their homes, so that they did not have to move out.

Four in ten parents are also thought to be dipping into their personal savings to fund the studies.

Steven Baillie, head of loans at Sainsbury's Finance, commented: "There is no doubt that university life is becoming increasingly expensive and financial contribution from parents is viewed as an integral part of the government's university funding.

"In the current economic climate, however, this can bring a real financial strain to many families, which is why it's important that parents who are thinking of alleviating their children's financial burdens with a personal loan make sure that they shop around for the best deals."

Sainsbury's Finance also said that parents give their student offspring an average of £8,070 over the course of their studies - although 33 per cent said that they give over £10,000.

Tags; Debt Management and Banking, Recent Graduate Debt,

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