Education Loan

A recent BBC News article indicated a cap on student loans in England and Wales at 6.3% this autumn, amid the rising cost of living.  It had been due to rise from the current 4.5% to 7.3%.  It is clear there is a great deal of anxiety right now for anyone furthering their study, with an unknown figure (perhaps rising) against debt that may be incurred.

“For around a quarter of a century, we’ve educated our youth into debt when they go to university, but never about debt.” Martin Lewis, Money Saving Expert.

Martin Lewis covers the topic of debt in great detail HERE and how it can put off many going to college or university. 

Martin goes on to add:

“Many parents aren’t aware that they are expected to pick up the slack, which can seriously impact on their finances, especially if they’ve more than one child at university.  For that reason, parents should start saving early to ensure they can manage the extra costs.”

If you have a child heading to university or college soon, it could cost you between £2,000 - £5,000+ per year. That’s just to help support their LIVING COSTS, this figure doesn’t include course fees and it doesn’t factor in the forthcoming energy increases.

According to research by Save the Student, average student living costs are £810/mth, while the average student maintenance loan is just £470/mth, leaving a shortfall of £340 a month.  Their recent Student Money Survey found that, on average, parents contribute £120.56 every month to their child at university.

A strong message here is to start saving what you can to plan for your child’s future higher education.

If you do need some support however, to help fund your child this student year, contact us find out if you are eligible to apply for one of our lower interest rate loans (starting from 3.9% APR* Ts/Cs apply) or to query topping up an existing loan. 

Email creditunion@harpandcrown.co.uk or phone 028 9068 5198.

“Save regularly and borrow only what you need.”