Most parents want their kids to do well in life, and getting a good education is often key to achieving this aim. Yet, with the average student graduating from college or university with over £50,000 in debt, getting a good education is a very expensive business.
Inevitably, parents will want to chip in where they can to make a dent in the debt mountain, whether by helping with their child’s education fees, paying towards student accommodation or other expenses. But what are the best ways to do this?
Many parents set up savings accounts for their children from an early age, or lock money away through bonds or investments over a period of time, to help towards education fees. Saving long-term means you can gradually build up a healthy nest egg to put towards college or university fees.
Yet, relying on savings may not be an option for every family. With paltry interest rates stalling the growth of savings, and the rising cost of owning a home making it virtually impossible to save any money in the first place, it often means that families have to turn to other financial sources to fund education fees.
Taking out a loan is a common option. Many students take out student loans or are eligible for grants, so it’s essential to look into the various options available to suit your circumstances.
For homeowners looking to help their kids, you might wish to consider equity release on your property, to get your hands on some much-needed cash. Equity release essentially refers to a type of scheme that allows you to release equity or wealth that is tied up in your home. You need to be over 55 to be eligible for equity release schemes, and you can release the money in small amounts via drawdown, or as a lump sum.