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With A-levels results day just around the corner, many parents will be preparing to help their student children with the cost of university.
But how much exactly will they chip in? Research shows that 26 per cent of parents who currently contribute, or plan to, expect to spend an eye-watering £50,000 per child.
This includes helping with the cost of undergraduate or postgraduate tuition fees, rent and living expenses, across a degree course of three years or more.
Some will pay out an even greater amount. The study by wealth manager Rathbones found that 11 per cent of parents who contribute expected it to cost them more than £100,000 per child.
Meanwhile a further 16 per cent believe they'll spend between £50,000 and £100,000, while more than a third (34 per cent) anticipate dishing out between £25,000 and £50,000.
Tuition fees will be £9,790 per year in 2026-27 for most. For living expenses, students can receive an annual maintenance loan of up to £10,830 if they live away from home, rising to £14,135 in London.
However, this is means-tested based on their parents' income and some students only receive the minimum of £4,915.
Helping hand: More than a quarter of parents say they plan to assist with university costs
One in ten parents surveyed by Rathbones said they expected to borrow money to help fund their child through university, while a similar proportion expected to rely on financial support from wider family members. Around 8 per cent anticipated selling assets to help fund their child's education.
Despite the financial commitment involved, most parents remain supportive of higher education.
Almost half (45 per cent) said they would actively encourage their child to go to university, while a further 20 per cent would encourage university but with strong concerns about the financial implications.
By contrast, just 2 per cent would actively discourage their child from pursuing a degree.
Ed Wood, financial planning director at Rathbones, said: 'Education remains one of the biggest investments many parents will ever make, but the cost of providing that support is rising sharply.
'What's striking is that some families expect to borrow, sell assets or rely on wider family support to help fund university, highlighting the financial pressures many households face.'
A standard full-time bachelors' degree in England, Wales and Northern Ireland typically lasts three years, or four years in Scotland. Most students spend their first year in halls of residence, followed by two years renting in a shared house.
How do student loans work?
For courses starting between August 31, 2026, and December 31, 2026, the maximum tuition fees for full-time students in England are £9,790 per year.
The majority of universities charge fees either at or around this level.
Some students might take a foundation year prior to their degree, which can cost up to £5,760 or £9,790, depending on the course.
Regardless of their parents' income, students can apply for a tuition fee loan from Student Finance England to cover the full cost of their tuition fees.
This is paid directly to their college or university and is repaid when they finish or leave the course.
Students can also apply for a maintenance loan to help towards their living costs Students can apply for a higher amount based on their household income. The loans are then paid in instalments at the start of each term.
If you live with your parents, the maximum amount you can receive is £9,118. If you live away from your parents and outside London it's £10,830. Or, if you live away from your parents in London it's £14,135.
All undergraduate borrowers must pay back 9 per cent of any earnings once their salary reaches a certain level, though this level depends on what student loan plan they are on.
The loans have been criticised for their high interest rates in recent years. Some graduates on Plan 2 - who started university between September 2012 and July 2023 - say interest is accumulating faster than they can pay it off.
This means their debt grows rather than shrinks, even though they are making repayments.
Plan 2 graduates earning less than £29,385 are charged 3.2 per cent interest, while. those earning between £29,385 and £52,884 accrue interest at a rate of 3.2 per cent plus as much as 3 per cent, depending on their earnings.
Anyone earning £52,885 or more will see their loans balloon at an interest rate of 6.2 per cent this year. This will be capped at 6 per cent from the 2026-27 academic year.
In July, the government was accused of mis-selling student loans in a damning official report.
The Treasury Select Committee probed whether the current student loans system is 'broken and unfair', and agreed that it was.
The committee then ordered the Government to reverse its freezing of the repayment threshold for some student loans.
Which are the best student bank accounts?
Choosing the right bank account for university is important.
Student bank accounts are specialist current accounts for those at university, and high-street banks usually bundle attractive student perks into these accounts.
The main benefit of a student account is usually an interest-free overdraft, which can help students manage the cost of university – but they should be aware that it needs to be paid back fairly quickly after they graduate or interest will start being charged.
Some accounts also offer a free Railcard or Tastecard, or will pay you interest on the balance in your account. Other perks may include cashback and similar rewards on everyday spending.
| Bank | Perks and bonuses | Interest free overdraft | In-app tools | Savings rate | Other notes |
|---|---|---|---|---|---|
| HSBC | Rewards and offers scheme | £1,000; can rise to £2,000 in year two and £3,000 in year three | Budgeting tools, spending insights, balance forecast | 5% regular saver (lasts 12 months) | No minimum deposits required |
| Lloyds Bank | £100 cash; up to £120 Deliveroo vouchers; Cashback and rewards scheme | Up to £1,500 years one to three; £2,000 years four to six | Spare change round-ups; see and cancel subscriptions | 5.25% monthly saver (lasts 12 months) | No minimum deposits required |
| Nationwide | £100 cash; £120 Just Eat vouchers; Potential £100 Fairer Share payments | Up to £1,000 year one; £2,000 year two; £3,000 year three | Spare change round-ups | 6.5% regular saver (lasts 12 months) | Must pay in at least £500 each term |
| NatWest | £100 cash; Four-year Tastecard | Up to £2,000; £3,250 from year three | Credit score, budgeting tools, spare change round-ups | 5.25% digital regular saver | Must use as main account |
| Santander | £20 cash; Four-year Railcard; cashback and rewards scheme | £1,500 years one to three, up to £2,000 by year five | Budgeting tools and spending insights | 8% regular saver (drops to 3% after 12 months) | Must pay in at least £500 every four months |
| TSB | 5% interest paid on balances up to £500 | £500 in first six months; £1,000 months seven to nine; £1,500 after | Savings pots, spare change round-ups | 5% monthly saver (fixed for 12 months) | Max interest on balance works out just over £2 a month |
| Source: This is Money, August 2026 | |||||