Parents dip into savings to fund kids at uni

Parents are raiding their saving accounts in order to fund their children’s time at university, according to the findings of new research.

A study by Halifax shows that parents will pay for their kids’ further education by many means, including selling a car, re-mortgaging a house, taking out an unsecured loan, or working longer hours.

Figures showed three-fifths (59 per cent) of parents would draw out money from their savings, while most (63 per cent) intended to divert cash from their salary or income into a university purse for their offspring.

"It is important to consider how best to support your child with the minimal amount of strain on your pocket as this commitment is likely to last for several years," advised head of Halifax Unsecured Personal Loans Neil Chandler.

"Often there are many up front costs such as paying for accommodation and buying books," he added.

Data from uSwitch reveals that students graduated with a total of £3.2 billion worth of debt in 2007.