London, 24 March 2026 – As scrutiny grows over frozen repayment thresholds and the long-term cost of student debt, new research from Octopus Money reveals parents are increasingly footing the bill for university.
A survey of 2,000 UK parents aged 45-65 shows since 2012[1], an overwhelming majority (84%) provided financial support to their children whilst they were studying at university and the same number say they have little choice but to help their children because university fees are now so high.[2] In fact, over half (58%) believe their children would never realistically pay off their student loan without help because the interest builds faster than repayments.
While student loans are seen as a way to help students navigate the costs of university, for many in today’s climate, loans are not enough to get by. Over half of parents (56%) with children currently in higher education are supporting with everyday living costs, in addition to their children taking out a student maintenance loan and over a quarter (29%) are covering their children’s housing. The average student maintenance loan in England for 2024/25 was £7,678 – roughly £640 per month.[3]
Parents are paying thousands each year to support children with costs
The pressure on family finances is significant. The research found parents with children currently in higher education are contributing on average £4,287 per child each year.[4] This figure rises to £10,065 for parents who paid some or all of their child’s tuition fees upfront or have helped their child make overpayments on their student loan after they had finished their course.[5] That means parents in the UK have contributed between £10,000-£30,000 per child for a three year course, depending on the level of support they’ve given them.
For many families, this financial support comes at a personal cost – nearly one in ten (9%) of parents have taken on debt of their own and borrowed money to help support children at university. Almost half (44%) of parents have dipped into savings or investments as a result of supporting children with higher education costs, while 38% have cut back on everyday spending. 13% say they have or are likely to delay retirement and 15% have put off major life plans or financial goals like buying a property.
Parents grappling with how to best support children
Despite children going to university being a traditional pathway for many families, a staggering 74% did not have a clear financial plan in place or budgeted in advance for the cost burden. This has led to three quarters (75%) of parents describing the cost of university as a shared financial burden between parents and children, while 68% said they wanted to provide greater financial support but their own financial situation limited how much they could help.
The research suggests some parents have tried to take on more of the cost for their child to avoid large loan repayments later in life, with 1 in 10 (11%) having paid some or all of their children’s tuition fees upfront and a small proportion (5%) even helping their children make overpayments on their student loans after graduation. Others chose to limit borrowing in different ways, with 31% covering everyday living costs in place of a maintenance loan.
Amid ongoing debate around repayment thresholds and interest rates, many parents whose children are thinking of going to university will be questioning what to do. 67% of parents say they are concerned about having to financially support their children with student loan costs if they go to university in the future – which rises to 73% for parents with children aged under 5.
Tom Francis, Head of Personal Finance at Octopus Money, believes the key to navigating these pressures is ensuring you strike the right balance between supporting your child as much as you can, without sacrificing your own financial goals – which all starts with having a clear plan.
‘Student loans have become a multigenerational issue, highlighting the need for a system that better supports graduates and reduces the knock-on impact on families. What is being called a graduate tax is now shaping parents’ finances too, often at the pinch point in life when they are thinking about retirement, navigating rising mortgage costs, and in some cases, financially supporting ageing parents.
‘No parent wants to see their child start adult life with what feels like a large and ever-growing debt burden. We regularly speak to parents who want to improve their child’s financial position but are worried about undermining their own long-term security in the process. By stress-testing your financial plan and setting clear boundaries, you can understand how much support you can afford to give, without compromising on your own goals or unnecessary sacrifice.’
Case study
Jo, 53, from Leeds didn’t expect university costs to reshape her own retirement plans. But with three children aged 16-19, the reality of funding higher education has hit all at once.
“It’s looking like all three might be at university at the same time, which is a scary thought,” she says. “When we added it up, we realised we’ll need to give each of them around £12,000-£15,000 a year to cover accommodation and living costs. That’s on top of their tuition and maintenance loans. Our eldest is starting next year and has a part-time job, but that doesn’t come close to covering everything.”
The scale of the cost took her by surprise. “When you’re raising a family, you focus on the stage you’re in, you don’t always look that far ahead.” She adds that other parents she knows are concerned, too. “I see more people looking at the route of apprenticeships like accountancy and law now, or choosing to study at Universities nearer to home so they don’t have to pay for rent.”
To make it work, Jo and her partner have made financial trade-offs. “I have put money that would have gone into our own long-term savings into supporting their education.” While Jo has no regrets, she is conscious of the impact on her own future. “Education is an investment in their future and I want to give them the best start possible. But it is expensive and will affect our retirement timeline.”
ENDS
Notes to Editor
1 Parents with children who are currently taking, or have taken, a full-time education course since 2012
2 Research conducted by Opinium, among a sample of 2,000 Nat Rep UK parents aged 45-65. The data was collected between 18.02.26 and 02.03.26
3 Student Loans Company (Save The Student)
4 Among those who currently support their children with expenses, rather than exclusively tuition fees, the average amount per child per year is £4,287
5 The average amount that parents contributed towards their children’s tuition fees or overpayments on their student loan was £10,065 (parents with children who are currently taking, or have taken a full-time education course since 2012)
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