The earlier a client starts saving for their child’s education, the more quickly they can repay their £44,000 graduation debt, Samantha Porter has said.
The group sales and marketing director for Wesleyan has warned parents who want to help clear their children’s university debt to start saving early.
She said: “Students graduate owing an average £44,035, and this figure is likely to rise. Parents who have children who want to go into professions such as medicine, law or teaching, which have longer courses, will have to consider saving even more.
“Parents should ensure they have the right savings plans in place and make the most of tax-efficient savings products, in particular their Isa allowance.”
She pointed to figures from Wesleyan that show that parents who save £133 a month from their child’s birth could clear the current average graduate debt when the child is 21.
However, if they put off saving until their children start primary school at five, they will need to save £187 a month, while waiting until they begin secondary school at 11 increases the sum to £323 a month.
If they wait until their child has taken their GCSEs aged 16, parents will need to save £689 a month – 7 per cent more than the average UK monthly mortgage payment of £646.
Adviser view
Robin Baker, school fees planner at Eden School Fees & Planning, said: “We would absolutely agree with the sentiment to save a little as early as possible. But I think people should consider tuition fees a tax on education rather than a debt, because of how the repayments are calculated. Tuition fees is, in one way the cheapest form of finance that can be repaid.”
