Survey: a third of parents re-mortage to pay university fees

Wednesday 05 October 2016

Jersey parents are facing a growing crisis over the cost of sending their children to higher education, according to a new survey.

The Jersey Student Loan Support Group (JSLSG) surveyed 251 adults, and found that 84% of parents are delving into their savings, while 75% are borrowing money to fund their children's higher education; a third are even re-mortgaging their homes. Another third said they may have to sell their family homes in order to raise the money.

The survey report said the present system, "...highlights the inequalities and articulates some of the real hardships faced by parents to provide funding for higher education in the absence of a viable alternative."

The JSLSG survey added: "The results of the survey are of great concern.  Over three quarters of parents have borrowed money to fund their adult children for higher education.  Over a third of parents who are homeowners have had to re-mortgage the family home with a further third stating that they may have to sell the family home.

"Parents reported a combination of methods to fund the cost of higher education including borrowing money from extended family and selling assets. 

"Of particular concern is that 84% of parents who reported using all or most of their savings.  Nearly half of parents are using their pension fund. This has potential for future negative ramifications for the Island. Financial hardship of parents in later life who may create a burden on the state for income support.

"A total of 32% of respondents stated that they had told a child that higher education was unattainable for financial reasons."

One parent said:  “We are unsure what funding may be available for our other children and are just hoping that they choose a different career path or we somehow manage. This maybe especially difficult as we have twins.”

Another added:  “We have four and don't feel it's fair to say some can't go so will go into debt to fund it to our detriment in old age.”

Another parent said:  “The worry about funding has impacted my mental health as well as that of my children with profound and distressing consequences.”

The JSLSG report concluded: "Jersey is wasting the talents of its young people by perpetuating the inequalities in the current system. Students need to be well-educated to promote opportunity and to reduce population pressure, which in turn decreases pressure on built environment, and further requirements of skilled workers, in finance, health and education."

Meanwhile, the Chair of the Public Accounts Committee, Deputy Andrew Lewis says the issue will be discussed in the States Assembly next week:

"Due to the gradual decline in government support, and the increase of tuition fees in the UK, the prospect of pursuance of Higher Education off island is now becoming the preserve of largely the wealthy, and middle earners who sacrifice a great deal to provide their children with this life enhancing experience.

"It is simply not acceptable that such a system should be so discriminatory.  By bringing this debate to the floor of the States chamber, the silent majority of people that sacrifice so much to give their children the opportunity to pursue higher education will finally feel that their voice is being heard and that something is being done to investigate every possible avenue of funding to ensure the future of our young people and the furtherance of the success of the Jersey economy upon which we all depend.”