|Four in ten UK parents feel pressured to pay for their children’s university fees, according to new research. The issue is expected to have a significant financial impact on households throughout Britain.
Some parents are even prepared to take out a loan to cover the cost of their child’s university fees. They are also willing to cut back on essential spending and downsize their belongings.
The research, from a leading price comparison website, found that 36% of people think that university is too expensive and should be free for everyone. Only 14% of people agree with the extortionate £9,000 maximum fees.
Whilst parents scrimp and save, 63% of them also believe that degrees are becoming devalued. 30% believe that young people today have no choice but to go to university, as they will need a degree to get even a basic job. Recent employment figures show that youth unemployment is at its highest level since 1992.
UK households and family budgets are already stretched to the limit. The higher tuition fees add another financial burden for families to cope with.
Only 5% of people think that university is of enough value to justify the fees, nearly 40% think it is NOT the best route to take when pursuing a career.
Michael Ossei, Personal Finance Expert at uSwitch.com, says; “The fact that future generations could miss out on University because of costs is very worrying. Young people looking at getting a degree today are facing a double whammy of rising tuition fees and a stagnant job market.
“To make matters worse, their parents, who may have been able to help out, are facing an uphill battle to keep their household afloat in the face of the rising cost of living, job losses and pay freezes. It is often the squeeze on their finances that will mean their children miss out on a University education.”
Over half of the parents surveyed who are planning to support their child will experience significant financial hardship as a result. The research found that 51% of parents are planning to either contribute significantly, or pay for the entire fee.
Four in ten are doing so to prevent their child from falling into debt, whilst 55% say this is the only way that their child can afford to go.
If you are concerned about funding your child’s higher education, compare loans with Money Expert.