Demand for student loans rise, say Credit Union reps

Credit Unions around the country have reported a marked increase in demand for student loans.

Fintan Ryan, manager of Tralee Credit Union, is among those who noted the rise in the amount of enquiries for loans and also for information on the bursaries programme.

He said: “Families are struggling to make ends meet and this has resulted in an increase in the number of student loan applications.

“In the past, parents would have ring-fenced funds to help finance children’s third-level education. Given the current economic conditions, many families have had to use these funds to finance their day-to-day expenditure,” he added.

Research produced by Dublin Institute of Technology has estimated the cost of a student living away from home at €7,470 for the nine months, with rent accounting for more than a third of the cost.

Tony Dennis, manager of Athenry Credit Union, said the lack of summer work was another factor for the increase in demand for loans.

“Although some costs such as rent have fallen this year, many students have struggled to find work during the summer and have been unable to put away savings to help tide them through the college year,” said Mr Dennis.

“We have noticed a 25% increase in student loan enquires as more and more students require assistance, particularly to cover up-front costs such as registration fees or deposits for accommodation,” he added.

Article courtesy of the Evening Echo newspaper.