Parents who help children with university costs are facing steep price tags, according to a recent study by wealth manager Rathbones.
Survey reveals a quarter of contributors expect to spend £50,000 or more per child
The research, conducted as A‑level results approach, found that 26 percent of parents who currently contribute or plan to do so anticipate spending at least £50,000 on a single child’s higher‑education journey. This figure includes tuition, rent and living expenses over a three‑year degree or longer.
Within that group, 11 percent expect the total outlay to exceed £100,000. Another 16 percent foresee costs between £50,000 and £100,000, while 34 percent think they will need to provide between £25,000 and £50,000.
University tuition fees are set at £9,790 per year for most courses starting in 2026‑27. Living costs can be partly covered by a maintenance loan that reaches up to £10,830 for students living away from home, and as high as £14,135 in London. The loan amount is means‑tested, so some learners receive only the minimum of £4,915.
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How families plan to bridge the gap
One in ten parents surveyed said they would borrow money to fund their child’s education, and a similar share expects to rely on financial assistance from extended family. About 8 percent anticipate selling assets to meet the expense.
Despite the burden, 45 percent of respondents said they would actively encourage their child to attend university, while 20 percent would support the decision but voice strong concerns about the financial impact. Only 2 percent would discourage a degree outright.
Ed Wood, financial planning director at Rathbones, noted, “Education remains one of the biggest investments many parents will ever make, but the cost of providing that support is rising sharply.” He added that families resorting to borrowing, asset sales or wider family help highlight the pressure on household finances.
Standard full‑time bachelor’s degrees in England, Wales and Northern Ireland typically run three years, extending to four in Scotland. Most first‑year students live in halls before moving to shared houses for the remaining terms.
Students can apply for tuition fee loans that cover the full fee amount, with repayments starting once they earn above a certain threshold. Maintenance loans are also available, with higher amounts for those living away from home, especially in London.
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Student loans often feel like mortgages.
In a broader sense, the data suggest that families are bracing for a financial environment where higher education costs could rival a mortgage. The willingness to stretch resources—through borrowing or asset liquidation—may indicate that parents view a degree as essential despite the escalating price tag.
Implications for policy and future generations
The findings arrive amid ongoing debate over student loan reforms.
While the government has not yet announced sweeping changes, the pressure on parents could influence future policy discussions. For now, families are managing a complicated mix of tuition fees, variable maintenance loans and personal finance decisions. The survey highlights that the financial commitment to university is not only rising but also reshaping how parents plan for their children’s futures.
