Friday, September 11, 2009
Category:
Secured Loans
According to The Children’s Mutual, university expenses for students that have recently received their A-Level results could reach £25 billion, which marks a £3 billion increase on last year.
The Child Trust Fund provider has revealed that the average student requires approximately £42,000 in order to finance three years at university. However, this figure does not include additional training that may be embarked upon following graduation.
Further, 87 percent of young people in the UK are currently receiving financial assistance from their parents when it comes to their university studies. With year-on-year university expenses increasing, The Children’s Mutual is advising the parents of young children to plan ahead. One method of building up a nest egg for young children is via the Government’s Child Trust Fund (CTF), which could result in a sum of £37,100 upon maturity if the maximum of £1,200 is deposited each year.
The Child Trust Fund recently conducted research, which established that Key Stage One children most want to become teachers, vets or doctors – all of which require a substantial sum of future financial investment. In fact, the latter could result in footing the bill for an extra £48,000.
David White, Chief Executive of The Children's Mutual, said: "University can be as much of a millstone as it is a milestone. While parents will be pleased about their children's successes as they receive their A-level results and many look forward to university, the high costs involved can be a real financial strain to a huge number of students and their parents. For families planning to support their children through university, finding a lump sum to cover the costs can be very difficult. Often, parents are left with no other option but to dip into their savings or remortgage their house. This can have a serious impact of their own financial futures.
"From 2020 all 18 year-olds will have access to their maturing Child Trust Funds as they enter adulthood and the money saved in these could make a real difference to both future university students and their parents. Those who save £24 per month, the average amount amongst The Children's Mutual customers, could have a fund worth £9,750 when they reach age 18. We are urging parents of CTF eligible children to consider saving for their children's futures now so they don't miss out."
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Homeowners who are currently mapping out their future finances in preparation for putting their children through university could consider taking out a
secured loan to re-organise any existing debts. One of many finance options available, a secured loan for debt consolidation could leave the borrower with just one monthly repayment as opposed to juggling several. This single monthly repayment could potentially work out at less than current outgoings – thus freeing up useful money each month, which could go towards building up that nest egg. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
