Parents paying school fees with loans
Parents keen to get their children off to the best start they can in life are turning to loans to fund school fees, Sainsbury's Bank has found.
But unless they are careful, proud mums and dads could end up shelling out thousands of pounds too much.
"It's reported that around 620,000 children - some seven per cent of all school pupils - are now privately educated in schools that can charge fees of more than £20,000 a year," said Rachel Brereton, Sainsbury's Bank loans manager.
And much of the cost of this education now being covered with loans, the bank reveals.
As many as 4,420 personal loans worth over £46 million are set to be taken out this year to go towards school fees, research by Sainbury's finds.
But by choosing the wrong loan provider parents could end up paying over £1,300 too much, the bank adds.
"Given that the number of fee paying pupils has increased by four percent over the past five years and that fees have risen by 43 per cent over this period, we expect to see more parents taking out loans to help pay for their children's school fees. Those parents doing this need to make sure that they shop around and find a competitive rate," Ms Brereton concluded.
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