An increasing number of
personal loans are being taken out to fund education, a new study has revealed.
Recent figures from Sainsbury's Finance indicated that around £37 million was borrowed by Britons during February to pay for school fees, university fees and general education costs.
According to the findings, the total figure equated to around 4,400
personal loans worth an average of about £8,500 each for such purposes.
It is thought that the increasing reliance on
personal loans is due to the cost of education becoming more expensive during the last year.
Steven Baillie, Head of Loans at Sainsbury`s Finance, said: "The cost of education has been rising. School fees rose by 5.9 per cent in 2009, and the education component of the Consumer Price Index increased by five per cent 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 confirmed that education was often a factor in taking out a loan, but advised any potential borrowers to be absolutely sure they could meet repayments.
