Wednesday, November 8, 2006
Category:
Consolidation
Sainsbury’s Bank recently revealed that it is important for parents to shop around for the best deal when looking to fund education fees.
Finding a better deal could save hundreds of pounds in interest. Sainsbury’s bank has seen an increase of around 38% in the number of loan applications to cover school fees. This is reinforced by their analysis of Government data which reveals the total UK household expenditure on education fees increased by almost 15% between 2001/02 and 2004/05.
On average, London households spend the most on education fees, spending £577.20. The East Midlands sees the lowest figure of £140.40.
Commenting on the rising cost of education fees, Steven Baillie, loans manager, Sainsbury’s Bank said: ‘Around 620,000 children are now privately educated in schools, which are consistently charging more in fees. The average fee increase in 2005-2006 was 5.7% and since 1999, they have risen by around 50%. Given this, and the fact that more children are being privately educated, we expect to see a growing number of parents taking out loans to help pay for their children’s education. Those parents doing this need to make sure that they shop around and find a competitive loan rate.’
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Parents who find that they have built up multiple debts on various credit cards and personal loans to cover off the rising costs of education could consider a debt
consolidation loan which might lower monthly repayments. Repaying borrowing over a longer term will however increase overall interest charges.
