DUBLIN, Ireland–A new survey commissioned by the Irish League of Credit Unions has found that more than three quarters of parents in Ireland are struggling to meet the costs of sending their children to college—and in some cases are turning to payday lenders to cover the bills.
Six-in-ten parents expect to get into debt funding their child’s college education, and estimate the debt accrued will be more than €2,400 per child per year, the survey found. Approximately 8% of all parents responding say they had approached a moneylender, compared 3% last year, the ILCU said.
And 12% of parents said they considered moneylenders a viable option compared with 7% in 2017, according to the league.
Parents who help fund their child’s college education estimate they pay €584 per month during the college term, the survey found. That is an increase over the average €535 monthly contribution last year.
Spending Cuts
“Significantly, 48% of parents who fund their child’s third level education say they will have to cut spending on clothing or goods for other children in the family to cope with costs,” the Irish Sun reported.
“Although the overall percentage of parents seeing moneylenders as a viable option is quite small, we view any increase as worrying,” Irish League of Credit Unions’ Paul Bailey told the Sun. “We want parents to know that their local credit union provides education loans at far more reasonable rates than moneylenders.”