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.

“And with students finding summer or part-time work particularly hard to come by, it has become more and more difficult for students to finance their third-level education this year,” a spokesperson said.

Tralee Credit Union manager Fintan Ryan said there has been a marked increase this year in inquiries for student bursary and student loan options as families struggle to make ends meet.

“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 said.

At Athenry Credit Union, where education loan rates have been set significantly lower than standard rates, manager Tony Dennis said difficulty getting student jobs during the summer has increased the burden.

A recent estimate from Dublin Institute of Technology put the cost of a nine-month college stint at around €7,470 for somebody studying away from home, not including the €1,500 registration fee now charged at most colleges, which has to be paid by anybody who does not qualify for a grant.