Parents forced to finance graduates due to tuition hikes
The rise of education costs means parents have to continue to support their graduating children, even after university. Students starting their studies in September 2012 saw the fees rise yet again and in some cases, the costs tripled for new starters. Currently, the average debt for graduates is a shocking total of £44,000, which is £19,000 more than under the previous education fee system.
The high cost of further education is putting a lot of pressure on parents to change their lifestyles later in life, in order to financially support their adult children as they go through university. According to a new study by Fidelity Investment, which can be viewed at http://www.fidelity.co.uk, the average amount of money spent by parents is just over £1,000. However, 22% of those questioned admitted that they have provided more than £5,000, and 12% admitted to spending upwards of £20,000.
The research also showed that parents with grown children continue to financially support their children after they leave home, with some spending as much as £23,059 on everything from university fees and weddings to a house deposit and their first car. And perhaps the most worrying thing is that the future also looks bleak, as George Osborne’s new plans for the fee system look set to lead to further rises for the cost of those seeking further education.
The last increase in fees in 2012 has not only led to a 8.9% drop in university applications but parents are still having to fork out high sums of money to support their children as without a university education, many are finding it hard to get professional jobs. The study also showed why many parents continue to provide financial support to their adult children, with 65% saying they do it because they love their children and 17% citing their duty as a parent for the main reason. Perhaps more worrying is that 12% of parents admitted that they have had to delay their retirement and 4% said they have had to remortgage their property to be able to afford to give their children the money they need.
The hike in tuition fees has meant that lots of parents have been left having to financially support their children through university and also after they graduate. With the proposed new implications from the Chancellor of the Exchequer, these already high costs look set to increase further in the coming years and this will likely lead to fewer people seeking further education as an affordable option.