Savings: A Privileged Recourse for the Financing of Higher Education

 

The average budget for higher education is 7,118 euros per year, a cost that increases when the student is moving towards a selective stream. To finance the studies of their children, the parents resort primarily to the savings, even to the credit to the consumption.

Higher education represents a significant item of expenditure: 7,118 euros on average per year and per child, according to the results of a study published by Kofidis on 21 May 2018. This amount includes housing (2,107 euros), living expenses schooling (1 897 euros) and food (1 182 euros). Most families anticipate these expenses and make financial arbitrations to allow their children to follow the studies of their choice.

 

Graduate studies represent a significant expense item

savings

If parents hope, as every year, that their child graduates, some are really aware of the cost of higher education. This cost is already a criterion for many future graduates. The survey conducted by Kofidis in collaboration with the CSA Research Institute highlights the weight of inequalities in access to higher education and the risks for the ” social lift “. First observation: the average budget devoted to higher education is therefore: 7,118 euros per year per child. These expenses include housing, tuition fees and other related expenses (food, transportation, pocket money, etc.).

 

Cost of studies

credit loan

Behind this average, however, there are significant disparities depending on the sector chosen. In fact, the family of a child who chooses to enroll in a business school spends much more! And we also achieve very large sums when it comes to follow a curriculum in engineering school: an average of 10,735 euros per year for business school and 9,733 euros for engineering school. On the other hand, the cost is lower when the student opts for a BTS (6,870 euros) or university (6,473 euros) because the registration fees are lower. The place of the study also impacts the total amount of expenditure. It is necessary to envisage an additional cost (3000 euros more per year) when the studies take place in Paris, the rents being three times higher in the capital. Thus, a Parisian student will pay on average 9,346 euros his year of study against 6,564 euros in the province. In these conditions, 20% of parents advocate a roommate to reduce costs and 14% use their network (family, friends, colleagues) to find accommodation for their child.

 

Savings: a preferred way to finance studies

credit problem

To allow their children to follow the studies they want, the vast majority of parents (80% according to the Kofidis Institute CSA study) declare to anticipate this expenditure, at least two years before their entry into higher education for more than half of those surveyed. The means of financing graduate studies of students vary according to the parents’ income. Those who receive relatively high monthly net incomes (over € 4,500) draw on their savings while the others use both savings and consumer credit. According to the study, 30% of households earning monthly net income of less than € 4,500 ask their child to participate through income from a student job. In addition, many families (more than one in two families according to the study already mentioned) receive financial assistance of the type Personalized Assistance to Housing (APL) or scholarships for their children. Inflation in the cost of higher education is all the more important because the level of support can not be predictable.

 

Other ways to finance children’s education

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In addition to state aid, higher education funding can be provided with the help of a student loan and possibly a state-guaranteed student loan. This loan of a maximum of 15,000 euros is for students under 28, all sectors combined. It can be repaid in a deferred manner, according to a partial or total deductible. Student jobs, alternation or sponsorship can also be of great help.