Parents know when they decide to pay for their kids’ university education that they’ll end up paying debt for eight years, claims a new study.
According to the annual HSBC ‘Value of Education Learning for Life’ report, 71 percent of parents think a university education is extortionate, 48 percent still believe that an undergraduate degree was necessary to achieve for their kids to achieve life goals, the Mirror reported.
Some parents like their child to follow a particular path like engineering and medicine topping the list of their preferred choices.
The survey also showed that more than nine in ten parents were willing to contribute to their child’s tuition fees and living costs, with nearly two thirds of UK parents considering sending their child abroad despite the cost.
Caroline Connellan, Head of UK Wealth, HSBC said that most parents consider taking on debt to send their children to university, but even though they feel responsible to help pay for their children’s education, by the time their children reach university age, they don’t have the required saved despite best laid plans.
With the average cost of tuition alone around 9,000 pounds, it can be the biggest financial commitment families make aside from a mortgage, she added.
With proper planning ahead of time and taking action early, parents could ease financial pressure and support their children through university in years to come, said Connellan.