Middle-aged, middle-earners squeezed by uni fees
A growing pensions crisis, low wage growth and higher university fees are putting the pinch on the already ‘squeezed middle’, figures from Wesleyan have revealed.
Parents who have sent their children off to university this autumn will see their children graduate with estimated total debts of £53,400 - and their parents will be shelling out much of this cost.
|
|
Based on university fees only (£27,000) |
Based on average student debt of (£53,400) |
|---|---|---|
|
Saving from birth (ie for 21 years) |
£77 a month |
£153 a month |
|
Saving from age five (ie for 16 years) |
£110 a month |
£217 a month |
|
Saving from age 11 (ie for 10 years) |
£193 a month |
£382 a month |
|
Saving from age 16 (ie for five years) |
£417 a month |
£825 a month |
However, it found that if parents had saved £153 a month from the day their child was born until they graduate age 21, they would be able to clear this debt, allowing the student to begin working life without being saddled by loan repayments.
Bridgit Richards, head of marketing at Wesleyan, said the longer parents delay putting money aside for further education, the more they will have to find each month.
Ms Richards said: “For parents wanting to fund the cost of their child’s university studies, the message is simple – the earlier you start saving, the more affordable it will be.
“These figures are based on projections for those who begin further education this autumn. University costs are likely to keep on rising, which is why it’s important for parents who intend to contribute towards their children’s studies to begin planning and making financial provisions as early as they can to mitigate potentially significant monthly costs.
“Parents who have children wanting to go into professions such as medicine, law or teaching, which have longer courses and added expense, may have to consider saving even more.”