Over four out of ten parents worry they’ll have to borrow for children’s 3rd level education.

Almost a quarter of parents worry 3rd level education won’t be possible.

August, 2014
A Standard Life survey of 1,000 adult respondents* revealed that while practically all Irish parents (96%) want their children to attend third level education, 44% worry they will have to borrow from a bank/credit union to fund it. Four out of ten parents or 43% said they have nothing in place to fund their offspring and almost a quarter of parents (24%) worry 3rd level simply won’t be possible.

Additional survey findings from parents:

• Almost half of parents (45%) regret not starting a regular savings policy when their children were born

When parents were asked what was in place to fund their children’s education:

• 43% have nothing
• 38% have a regular savings plan
• 10% have a lump sum/inheritance,
• 9% of parents say grandparents have offered to help
• 8% an investment property
• 5% other means

This year’s results versus last year’s:

•  The percentage of parents worried about having to borrow for their children’s 3rd
• level education has decreased from 51% to 43%
• Parents who are worried 3rd level won’t be possible has fallen from 28% to 24%.
• The proportion of parents with nothing in place has fallen from 45% to 43%
• The percentage of parents with regular savings plan in place has decreased from 43% to 38%.

“Parents seem more optimistic about providing their children with a 3rd level education, but it seems many will have to borrow to do so,” said Sinead Cullen, product development spokeswoman for Standard Life.
“It’s cheaper in the long run if people can save for their children’s education rather than borrow,” she said. “The average cost per student can be typically between about €7,000 to €10,000 p.a. depending on whether they’re living at or away from home. If parents could save between around €100 to €200 per month from the beginning for each child, they would be in a strong position at university time; importantly they will also have peace of mind for all those years too,” she said.
*The survey results are based on an independent, online survey conducted by Research Plus Ltd on behalf of Standard Life of 1,000 adults aged 18+ between 26 June and July 4, 2014. Over three hundred adults were parents with children younger than 3rd level entry age.