Friday, 11 April 2008

Harry Potter and the rise of school fees

How expensive is it?The average boarding school fee in 2007 was £20,970 a year, that is 73% of the average annual salary of £28,590, according to Halifax Financial Services.
In London it costs even more at £23,250. Wales, with an average cost of £18,540 a year, is one of the cheapest places for boarding schools.
And this is just for the first stage of a child's education, before university tuition fees and student debt make a bigger dent in pockets - and it doesn't include extras such as transport, school uniforms, books and, of course, pocket money.
For parents without savings or investments, and before the impact of the credit crunch, they might have thought about remortgaging to use equity in their home or taking out a personal loan to pay for school fees. But nowadays with mortgages and personal loans more difficult to get and more expensive, and with house price drops on the cards, these options need to be carefully thought out.
And indeed, some young parents, fairly new to the housing market, may not have high levels of equity anyway.
You can reduce the cost of sending your kids to private school by cutting out boarding. On average, a private day school cost £8,121 a year in 2006/2007, and £11,145 a year to be a day pupil at a boarding school.

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