Parents of students heading off to university this year could take out as much as £53.8 million in personal loans to cover rising tuition costs, new research claims.

The research from Sainsbury's Bank found that increases in tuition fees this summer from £1,175 to £3,000 could lead to a rise of between 17 per cent and 21 per cent in the cost of living for students.

However, parents looking to help cover this with a personal loan should make sure that they shop around for a competitive loan, the bank said.

Loans manager at Sainsbury's Bank Steven Bailie said: "As students go back to university, many will face a significant increase in their living expenses.

"As well as students taking on paid employment to help cover this cost, some of their parents are also taking out personal loans to help.

"However, people need to ensure that if they are going to do this, they shop around for a competitive rate."

A recent study from credit reference agency Callcredit found that the 345,000 students heading off to university this year were likely to graduate with collective debts of more than £5 million.

Return to News index