Parents borrow £37m to pay for education

Monday, June 7th 2010

Parents have taken out loans worth nearly £40 million in order to help pay for the education of their children.

New figures from Sainsbury's Finance show loans valued at £37 million were approved for this purpose last year, with the majority paying for higher and further education.

A total of 1,900 loans were used to pay for university and college fees in 2009 - worth £13.56 million - while 1,100 helped parents meet school fees and 1,400 went on other forms of education.

Commenting, head of loans at the firm Steven Baillie said parents have had to take action due to the increasing prices.

"These rises can be hard to bear in difficult economic times, so it is not surprising to see many people taking out personal loans to help with this cost," he noted.

Education loans may be one reason behind rising household debt.

According to Credit Action, the average UK household currently owes £57,915, with the figure expected to increase further over the next five years.