Advisers can help meet uni fees with ITs: AIC
Annabel Brodie-Smith, communications director for AIC said: “ITs invest in a range of firms on the parents’ behalf and spread their investment risk, costing from as little as £50 a month, to a one-off payment over £250.”
This cost-effective method has been publicised in response to a student debt research survey released by the AIC, which states 86 per cent of parents are struggling to support their children through university, and that many students across the UK have concerns over higher education expenses due to the current economic climate.
The data reveals that 54 per cent of students are expecting to graduate with more than £20,000 debt, a 5 per cent increase on 2011 figures, while university guide Push.co.uk suggests the average debt for students starting a UK university in 2012 will be £53,000.
To tackle this post-graduation debt, many parents want their children to live at home, and almost a fifth wish for them to attend a lower-charging university.
Nearly half of parents asked in the research also said they will use their cash savings to fund their children through university. Yet according to the AIC survey, investing money could be the helping hand to paying undergraduate fees.
Ms Brodie-Smith said: “If £50 a month had been invested in an investment company over the past 18 years the current return would be £21,647.”
Ms Brodie-Smith added that, over an extended period of time, it’s possible to save for the fees by using investment companies, as these can access the long-term potential of the stock market.
She said: “The sooner you start investing for your children, the better chance of greater returns and being able to advantage the student financially.”