Reasons to take on more debt….

Well maybe there are good reasons and here at debt advice now we are starting to see many people
taking the plunge and taking out NEW loans and top up mortgages to pay for their children’s education ?

So they say anyway, but if they are spending it on a holiday in Spain or a New car then they really are
heading for major financial problems up ahead as property prices are set to remain pretty static over the next 5-10 years?

Anyway here’s another interesting article about universities and colleges in England and Wales (Scotland1
and Northern Ireland2 are currently under review)

The new fee structure means that they can charge up to £9,000 per year3
for their full-time undergraduate courses.

Living costs on top of this – estimated at £5,500 per year3 –
which means the average student starting a course in the 2012 academic
year could need up to £14,500 for their first year.
And assuming inflation on fees and living expenses at a modest 2.5% per year, the
average student starting a three year university course at age 18 in 2020 could
need £17,743.28 in their first year, £18,186.87
in their second year and £18,641.54 in their final year – a total of £54,571.694.

Interesting thought so instead of Debt how can this be paid for ?

Family members such as grandparents want to help but now and the rules governing student funding
may change. But there are investment solutions available to get you saving now and help you
avoid paying too much tax in the process.

Example: How can I help fund my grand children’s further education? Michael has just retired in his early-60s. Aware
of the recent university funding headlines, he wants to put away £20,000 of his tax‑free
lump sum from his pension for his only granddaughter, nine-year-old Rosie.
Michael expects him and his wife to spend the first few years of retirement travelling,
renovating their home and enjoying their family, after which he might be able to top up Rosie’s
university fund with surplus monthly pension income for a few years more.

To be fair unless you can see a on going income in the industry that the child is studying in I would be careful in spending money
for the sake of it just to say that “jonny” has a degree which cost £54000 and he’s now on the dole?

Good advice from debt advice now,is if you don’t have a good job and a steady income then let them study at home for free possibly on line
and save the fees to help them later on in life (but don’t just spend it) reduce your own debts then save it.

If in doubt get in touch we are always here to help and we don’t bite!.