Undergraduate? Under financial strain?

Parents are facing financial hardship to put their children through university. As freshers and students across the UK head off to university for the start of term, a survey by Halifax has found that mum and dads are prepared to scrimp, save and beggar themselves to ensure their children have a university education.

Holidays, cars and home improvements are just a few of life's little luxuries that parents are prepared to sacrifice to help their children stave off student bills. Many of those surveyed said they would dip into their salary and retirement nest egg and even take a second job to help support their child.

The funding regime that came into effect last year has increased tuition fees to £3,000 a year at almost all universities. And while an increasing number of students are working during term time to fund university life, it is parents who are bearing the brunt as top up tuition fees drive up the cost of doing a degree.

"For most parents, taking your child to university for the first time is a proud but emotional moment," says Neil Chandler, head of Halifax Unsecured Personal Loans.

"It is important to consider how best to support your child with the minimal amount of strain on your pocket as this commitment is likely to last for several years." Around 400,000 students are starting their new life at university - and if they're not careful they could run up debts averaging £13,500 by the time they graduate.

"University life is very expensive and the last thing we want is for our children to run up big debts," comments Andrew Elson of Bates Investment Services. "It is only natural that we should want the best for our children. But with the overall price tag of taking a three-year degree including living expenses, around £35,000; it is a heavy financial burden to bear.

"The good news is that with a little forward planning you can substantially reduce the costs of sending your child to university. And the earlier you start the better prepared you will be to meet those costs."

As part of the planning process you will need to consider whether you want to fund the full costs of university and pay them as and when they fall due, or whether you would prefer to allow your child to receive the student tuition and maintenance loans and then repay these loans for them after graduation.

Plan your kids' future financial well-being now!

The second option might be worth considering if you need more time to accumulate sufficient savings. If you are a parent of a newborn baby you will now need to save around £179 per month to cover the expected cost of a three-year university course starting in 18 years time. Alternatively, investing a lump sum of £22,857 might be sufficient. If you start saving 10 years before university starts, the figures rise to £286 a month or a £26,619 lump sum. And five years before university, £501 per month or a lump sum of £29,279.

But if you don't have the financial means to pay for your child's education, don't despair - there are still options available.

Bursaries

All universities offer bursaries based on several criteria - parents' income, grades or excellence in various fields. The average bursary is £1,000 cash and you don't have to repay it. If parental income is low - between £17,910 and £38,330 - students will qualify for a maintenance grant worth up to £2,765 a year, which doesn't have to be repaid.

Every full-time student who qualifies for the grant on a course charging the full £3,070 a year must receive a bursary of at least £305. More information on bursaries, grants and loans can be found at www.countdownto uni.direct.gov.uk/

10 October 2007 © Moneyextra.com

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