Shepherds Friendly mutual launches ‘in demand’ university savings plan
Shepherds Friendly has just announced the launch of a University savings plan for members. The plan will provide a simple and effective way for members to save for a child’s university education and will help to counter the spiralling costs brought on by tuition fee rises at UK universities. With the interest rate on student loans also set to rise, Shepherds Friendly say it is all the more important for students to stay as ‘loan free’ as possible.
The product has been developed following research conducted into parents’ needs; the results of which showed that the key area parents in the UK are saving for is a university education for their children.
The Shepherds Friendly University Savings Plan offers their members a simple, flexible and effective way of saving for higher education, whilst also providing added benefits such as sickness and injury cover for the nominated child.
Shepherds Friendly feel that this plan is excellently suited to providing families with a sum that could help hugely in reducing, or even eliminating totally, any loans taken out to pay for university tuition and attendance in the future.
After the coalition Government announced that tuition fees for university students in the UK were set to rise at the discretion of each institution, up to a maximum limit of £9000 per annum, there has been much talk in the UK press about the restrictions this could pose to those wanting to go to university from September 2012 onwards. It is believed by many that the majority of universities will go for the maximum price rise.
This has left many families worrying about the financial burden that a massive loan will have on them and their children.
The plan allows the members of Shepherds Friendly to save in a tax efficient way in the years leading up to a child going to university, with a tax free lump sum that can be withdrawn in stages or a lump sum once the child is between the ages of 18 and 21.
The benefits included in the Shepherds University Savings Plan makes going to university far less daunting for students and their families, providing them with the financial security that will mean an otherwise large financial burden could be significantly reduced.