As many parents waited anxiously to hear if their children had got into the Primary school of their choice, spare a thought for those who do aspire to go on to University.
A study, written by researchers at the Institute for Fiscal Studies (IFS), assessed the impact of the new student loan system for fees and maintenance, introduced in England from September 2012, to coincide with higher tuition costs of up to £9,000 a year.
The study – entitled Payback Time? – found that a typical student would now leave University with debts averaging more than £44,000, “much higher than before”,
The study, commissioned by the Sutton Trust felt, that most students will still be paying back loans from their University days in their 40s and 50s, and many will never clear the debt. Indeed, almost three-quarters of graduates from England will have at least some of their loan written off, the study says.
David Dawson, Savings Director at The Children’s ISA said, “Students who began their degree courses from September 2012 will be burdened with tuition fees. But when you add on the cost of living, the true cost of going to University can be a daunting thought. Taking inflation into account the real cost of University could be over £75,000 for children born today”
Now the Government has announced that Child Trust funds can be transferred into the more competitive Junior ISAs from April 2015, parents have the opportunity to get their savings plan for University costs back on track.
The Children’s ISA has a range of tax efficient options to help you save for your child’s higher education. Look at the Investment Options available along with the Risk Options to help you choose the investment which you feel best matches your aspirations for your child. To help you plan how much you might need to invest to offset the cost of University, you can use their savings calculator.
For more information on The Children’s ISA range, please visit www.thechildrensisa.com