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By Halifax

Date: Tuesday 15 Jul 2008

We all want the very best for our children, and there's nothing more valuable than a first-class education. According to recent reports, more and more middle class parents are becoming disenchanted with what they see as a poor choice of local state schools, while the very best comprehensives are regularly over-subscribed. In response, many are deciding to opt out of the state system altogether, and, despite the heavy costs involved, are starting to consider private education.

However, packing the kids off to an independent, fee-paying school is a big decision, not to mention a rather expensive business. A recent study carried out by Halifax found that boarding school fees in particular have increased dramatically over the last 10 years, in some areas by as much as 96%, which works out at nearly three times the rate of inflation. The average annual fee for boarders has now broken the £20,000 barrier, soaring from a little over £11,000 a decade ago. Sending a child as a day pupil costs less than half as much, but at nearly £10,000 it still isn't cheap.

Over the last five years in particular, boarding school fees have risen far quicker than average earnings and if you do intend sending your children to boarding school, it’s essential to plan your finances as early as possible.

Such vast sums now mean that for many professional couples, private school is becoming far less affordable, even for those with two above-average incomes. The number of boarders at private schools has declined by some 14% since the late 1990s, but at the same time the number of day pupils has gone up by 12%.

Some parents are clearly prepared to make big sacrifices in order to get their children into high-achieving independent schools.

According to a report in the Evening Standard, more than half of families with children in private education have had to forego foreign holidays, and many found that money spent on such things as dining out, gym membership, new cars and all but the most essential home improvements had to be ruthlessly cut back too. Some parents have even been willing to sell up and move to smaller homes in order to meet the rocketing costs, while others have chosen to take out loans.

For many, it’s well worth it, but there’s no denying that putting your children through private school can be a serious financial strain. Some schools have sought to ease the costs by introducing more bursaries to help parents, and nearly a third of pupils at independent schools now receive funding of some sort.

Those struggling to meet the costs of school fees can take advantage of an unsecured personal loan from Halifax of between £1,000 and £25,000, with a range of unsecured loan rates and terms depending on your circumstances. You can also apply online to help out with those extra expenses.

As security for your loan, we have a right of set-off. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ

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