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Making university feesible

About a quarter of parents and grandparents have started squirreling away cash into accounts and ISAs in response to higher university feesm, according to research carried out by Virgin Money.

Maximum tuition fees will soar from the current maximum level of £3,290 to £9,000 a year in September 2012. And it’s not only tuition fees that will cost students but also day to day living costs including food, expensive text books and rent. Virgin’s research shows that nearly a quarter of over 65s are already saving in order to get their grandchildren through college.

Worryingly, not all parents are well prepared. Around 64% have not started saving. A big reason for this is that four in five (82%) believe that students should fund their own further education.

Grant Bather, a spokesperson at Virgin Money, told Walletpop UK: From September 2012 onwards tuition fees are going to rise substantially and it is clear that parents and grandparents are already starting to prepare for the financial burden. It is interesting that people believe future students themselves should be contributing as well. Ultimately they will be the beneficiaries so there is some justice in them saving.

’However, saving for potential tuition costs of up to £27,000 for a three-year course will be a major undertaking for these young people - especially if they have to find the cash to fund their living costs on top of that.’

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