Parents 'Dipping Into Savings to Cover Kids' University Costs'

Around one in five parents say that their savings have been affected by their children's university education.

According to a new poll from Norwich Union, parents are increasingly being forced to limit their pension contributions or dip into their savings accounts in order to fund the studies. Moreover, one in four told the insurer that they worry about being forced to give up holidays or even remortgage their homes due to the financial pressures, the Daily Mail reports.

Currently, the cost of attending higher education for three years - including living costs, tuition fees and the student loan - stands above £30,000. While much of the debt is transferred to the student and then paid off automatically over the following years, parents are also shouldering some of the financial burden, particularly for day-to-day living costs.

The Norwich Union survey also found that 46 percent of parents were looking to encourage their offspring to study locally in a bid to cut expenses, while 23 percent said that they would advise them to study only part-time, in order for them to take a job while they study.

Cheryl Cox at Norwich Union said: "Another generation of UK teens will enter higher education this autumn and, while parents may well be filled with pride, this looks set to be overshadowed by fear and panic over how they are going to shoulder the financial burden.

"We all want to do the best for our children but, by making the ultimate sacrifice and using their pension funds to cover the costs, a fifth may face a bleak financial future."