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ARTICLE · 18 SEPTEMBER 2007

University Fees Planning: A Tough Education

Planning for the cost of school or university education is harder than ever for many parents. We outline some financial strategies to help cope with the rising costs.

United KingdomFinance and Banking

Planning for the cost of school or university education is harder than ever for many parents. We outline some financial strategies to help cope with the rising costs.

A recent survey in The Times has shown that, for the first time, annual private day school fees have reached £20,000 in some cases. In fact, school fees inflation has been running at higher than 10% for a number of years now. This has led to the withdrawal of many insurance-based school fees funding plans, which now require unrealistic growth rates over relatively short periods of time.

A further issue facing parents whose children go on to further education is student loans.

Rising Costs

Maximum university fees for the academic year 2007/8 are £3,070, excluding living costs. Assuming 3% inflation, this will be around £4,125 in ten years.

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