According to Sainsbury’s Bank, personal loans to cover education costs are set to rocket this year as tuition fees near-treble to Â£3,000, yet many could add further to this debt by not shopping around for the best rate.
“As students go back to university, many will face a significant increase in their living expenses,” said Steven Baillie, loans manager at Sainsbury’s Bank. “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.”
Tuition costs are rising, with Children’s Mutual claiming earlier this month that the cost of some courses will rise to Â£70,000 once living, travel and other expenses are factored in.
Sainsbury’s reinforced this claim, saying that the cost of living could rise by 21 per cent this year for students and urged borrowers to find a competitive loan if they do take one out.