Education Fees Funding

Paying for a private education or funding your way through university is a very costly experience these days. Below are some examples of the potential costs involved:

Pre-prep school (age 2 to 7)	£700 - £1,200 per term
Prep day rates (age 7 to 13)	£1,400 - £2,500 per term
Prep boarding rates	£2,700 - £4,000 per term
Senior day rates (ages 13 to 18)	£1,700 - £3,500 per term
Typical senior boarding rates	£3,100 - £5,600 per term

Source: www.privateschools.co.uk/school_fees

University fees are not much different and the website www.universityadvice.co.uk claims that the cost of further education, a three year course starting in 2006 (outside London ), taking into account living expenses, will cost on average £33,631.

There are several ways to tackle this growing problem. The first is to allow your children to take out the maximum student loans, however, this risks them starting out in life with huge debts at a time when they may be considering taking out a mortgage, which, given the recent rise in house prices is likely to be a massive debt in it's own right. The second is to start to help them now by planning for the expense.

This planning could take the form of making regular monthly payments into some form of savings scheme or by using lump sums. There are numerous types of schemes available and although many people will not be in a position to fund the full cost of the fees they can make a significant contribution towards them. By starting planning as soon as possible and by selecting the right method of funding the fees the burden can by reduced or completely removed.

We can help clients who want to provide for their children's education by planning and preparing for the eventual costs.

Pannone LLP is authorised and regulated by the Financial Services Authority.

Call us now 0844 980 1430 for a consultation with a Pannone Financial Services Adviser or send us an email. We are available to take your call twenty four hours a day, seven days a week.