The Financial Services Authority is to work with 17 universities across the UK to help students manage their money in a better way.
The ‘Money Doctors’ programme will start in the next academic year and will help student confront debt, take control of their money and plan for the future.
Recent research has found parents believe that their children will leave university with a debt of only £7,080, which is well below the average figure of £13,500.
The introduction of tuition fees at £3,000 pa has left some with growing shortfalls as few parents can afford to pay for the childs’ fees in their entirety. Only one in five students expect their parents to pay in full, although one in three parents have resigned themselves to this.
One in five parents give up their annual holiday to see their child through university, while 18% would set aside the money they would otherwise spend on a new car. But around 13% believe that their children should pay for it themselves, without help.
Our view
We do not see how this can help. The current system means that many students leave university with huge debt and they would need a full time job whilst at university to prevent this.
A waste of funds and resources, better spent on educating young parents on the need to save or help their young children save.