Parents saving more for increased tuition fees

09/02/2011

Research carried out by ING Direct has revealed that the forthcoming rise in tuition fees – due to come into effect in September 2012 – is the main reason that parents are saving more.

1,300 Britons were questioned, 23 per cent of whom said that they were saving more or setting up university accounts due to the forthcoming increase. One in 10 also admitted to having second thoughts about going, or their child going, to university.

The standard annual cost will increase to £6,000 from £3,290, while some institutions will be able to charge up to £9,000 if they meet particular criteria.

Sarah Marten, a mother of two from London, said to the BBC: “It feels absolutely impossible. I mean, we don't have that much surplus income. Interest rates are really low as well. And when you put those things together and you look at how much you can save, it's going to be a really small amount."

Parents wanting to pay three years of tuition fees at £9,000 would need to save £93 a month from birth in a tax-free cash ISA, according to the financial website moneyfacts.co.uk.

Some students could end up owing £40,000 in debt due to their three years spent studying.

By Frank Burbage.

Tags; Current UK Economy, Budgeting Advice, Income Worries and Debt, Recent Graduate Debt,

Regional Debt Advice; Debt Help London,

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