Thursday 9th of July 2009
Parents have admitted they are finding it increasingly difficult to locate the money to pay for their children’s university expenses, a new survey has revealed, although obtaining individual voluntary arrangement (IVA) advice to help clear current debts could be an option.
Almost three-quarters of mums and dads claim that the recession has placed a financial strain on their ability to meet the cost of further education, the report by Association of Investment Companies (AIC) found.
Furthermore, with tuition fees set to rise next year, parents may be even more concerned how they will juggle their own debt with their kid’s education. An IVA could, however, allow borrowers to repay an amount back to creditors at a level they can afford, which may leave some money left over to contribute to university.
"It’s particularly concerning in this economic climate that many students and parents fail to understand the true levels of debt they will face on graduation," Annabel Brodie-Smith, communications director at AIC, stated.
The Press Association recently reported that the Student Loans Company lent £4.2 billion in 2008-09.
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