Parents turn to personal loans to fund private education
First published - Wednesday 9th August 2006
An increasing number of British parents are taking out personal loans to fund their children's private education.
The number of loan applications to cover school fees has soared by 38 per cent in the past 12 months, figures from Sainsbury's Bank show.
Around 620,000 children are privately educated in the UK, with fees for private schools experiencing a rise of around 50 per cent since 1999.
British household expenditure on education fees is also on the rise, increasing almost 15 per cent between 2001/2 and 2004/5, according to the bank's analysis of government figures.
Londoners pay the most per household for private education, with an average spend of £577.20 between 2002/3 and 2004/5, while those in the East Midlands pay only £140.40.
Loans manager at Sainsbury's Bank Steven Baillie, said: "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."
Despite the bank's advice, 38 per cent of those who have taken out a personal loan in the past five years obtained only one quote.
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Loans set for change 24.09.2007
