Parents dip into college funds as recession bites

PARENTS have been forced to dip into funds built up for their children’s college education to tide themselves over due to unemployment and wage cuts, credit unions are reporting.

They said more students are coming to them this year in the hope of financing college, as grants are falling and part-time work is more scarce. However, some unions have found that some college funds are being dipped into because of job losses, reduced wages and other financial woes.

The Irish League of Credit Unions (ICLU) said the 5% decrease in grants this year was a factor in a noticeable increase in applications for student loans.