£37 million taken out in loans for education

8 June 2010

Borrowers took out a combined £37 million in personal loans for education in the year to February 2010, according to estimates by Sainsbury`s Finance.

Around 4,400 personal loans worth an average of about £8,500 each were taken out to help pay for school fees, university fees and general education costs, the report adds.

Steven Baillie, Head of Loans at Sainsbury`s Finance, said: "The cost of education has been rising. School fees rose by 5.9% in 2009, and the education component of the Consumer Price Index increased by 5% in the 12 months to February 2010.

"These rises can be hard to bear in difficult economic times, so it is not surprising to see many people taking out personal loans to help with this cost."

A loans expert at Think Money said: "Education is one of many reasons people borrow money. Whatever the reason, we advise anyone thinking about taking out a loan to make sure they can repay it - and to make sure they get the best deal."

Tags: loans, education, personal loans, Sainsburys Finance

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