Most Students Need Loans – Parents

More than half of parents expect their child to have to take out a student loan to fund their studies at university, a new survey shows.

Around 57% of parents said their child either had or would need to take out a student loan, rising to 71% among parents who work full-time, according to high street bank Halifax.

Nearly two-thirds of parents said they would help finance their child’s studies using money from their salary, while 59% said they would use their savings.

More than a third said they would consider either themselves or their partner getting a job or working longer hours to fund further education.

One in 10 parents said they would take out a loan, and the same proportion would consider remortgaging their house or selling their car.

Just under a third of parents said they would provide their child with funding so that they did not need to take out a student loan.

Parents are also prepared to put purchases on hold to see their child through university.

Two-thirds of parents said they would put off having a new kitchen or bathroom, 66% would go without a new conservatory and 65% would do without a holiday.

More than half of those questioned said they would be prepared to give up “anything and everything” to help support their child, but 16% of parents said they would not be prepared to make any sacrifices.

Neil Chandler, head of Halifax unsecured personal loans, said: “For most parents, taking your child to university for the first time is a proud but emotional moment. It is important to consider how best to support your child with the minimal amount of strain on your pocket as this commitment is likely to last for several years.”