This week thousands of new undergraduates in the UK are starting university. Many are frightened at just how much their degree is going to cost but research shows that a university education is worth the money. Parents can ease the burden by planning ahead.
The Organisation for Economic Co-operation and Development (OECD) has just released a report showing that undergraduate university fees in England have tripled in 10 years, the steepest rise of all the developed countries in the world.
Domestic undergraduates starting their degrees in the UK in 2021 will pay a minimum of £9,250 per year in tuition fees alone. For international students, fees can be much higher. An international student taking medicine at Oxford, for example, will pay as much as £36,800 per year. British expatriates living outside the UK should note that to qualify for domestic fees, a student needs to have lived in England for the three years prior to starting their course.
With fees high, and rising, are university students getting value for money? Is it even worth shelling out for a tertiary education or would your children be better off heading straight into the workforce?
Is a degree worth the money?
The findings of the report suggest that a degree, in the UK or in most OECD countries, is still worth the money when you consider future employment and earnings potential. Check out these stats:
- On average across OECD countries, younger adults (25-34 year-olds) with tertiary attainment working full time and part time earn 38% more than their peers with upper secondary attainment; 45-54 year-olds earn 70% more.
- In the UK, a degree repays £3.40 for every £1 (and this figure is even higher in almost all other developed countries).
- The OECD report clearly states that ‘Higher levels of education do translate into better employment opportunities.’
- In addition, ‘the potential to earn more and see those earnings increase over time, along with other social benefits, is an important incentive for individuals to pursue education and training’
So if your child is keen on getting a world-class university education in the UK, it will be a worthwhile investment, albeit an expensive one.
University fees: easing the burden
If your children are not yet at the university stage, these figures may make your heart sink. But planning ahead can significantly ease the burden when it is time for your offspring to fly the nest. Parents can create a bespoke savings plan to spread the cost of their child’s education over a number of years. The earlier you start, the better, so even if your son or daughter is a mere babe in arms, it’s not too early to set up an education fee plan.
Here at Infinity we are experts in helping expatriates living abroad fund the best possible education for their children, taking into account factors such as local inflation fluctuations and possible future relocation onshore. Contact us and we can connect you to one of our experienced financial advisers to start planning for your child’s university education now.
Give your child the best possible start in life and get in touch now!
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