Parents are increasingly looking to spread the cost of private school as fees continue to increase, new data from Premium Credit has revealed.
The latest data has revealed that the number of clients using its School Fee Plan (SFP) has nearly doubled in the past two years rising by 93% and the total lent is 24% higher than in 2021.
Total lending increased by 10% last year compared to 2022 and the amount of funding provided through SFP in the first three months of this year is 9% more than the same period last year.
The number of clients using SFP last year was 5% higher than in 2022 while the average amount of funding is now around £8,000.
The number of clients using SFP in the first three months of this year is 29% higher than in the same period last year.
Private school fees are rising at between 3% and 4% a year with average* day school fees around £16,374 a year and boarding schools around £39,000 a year.
Day fees at boarding schools are around £21,500 a year.
Stewart Ward, director education sector and head of school fee plan at Premium Credit, said: “Parents with children at private schools are increasingly looking to make fee payments more manageable while also grappling with the general rise in the cost of living.
“The number of parents taking out plans with us to help fund their children’s education has nearly doubled in the past two years in response.
“For many, it makes sense to spread this cost, even if they can afford to make the payments every term.”
