Parents and grandparents are increasingly stepping in to fund higher education costs, new research from Rathbones has revealed.
Rathbones’ research found that almost seven in 10 (69%) parents expect to cover at least half of the total cost of university, with 15% expecting to pay all or almost all costs themselves and 23% expecting to cover most costs. One in three (31%) anticipate an equal split between student loans and parental support.
Additionally, nearly two-thirds (65%) of respondents say grandparents contribute or are expected to contribute towards education costs either regularly or occasionally.
The findings come amid calls for greater transparency around the long-term financial implications of student borrowing.
Charlotte Kennedy, chartered financial planner at Rathbones, said: “Funding university is increasingly becoming a family affair, with the Bank of Grandma and Grandpa stepping in when the Bank of Mum and Dad is feeling the strain.
“We regularly hear from clients who are concerned that younger generations are being squeezed from every direction. University costs continue to rise, while career prospects after graduation are becoming less predictable as AI reshapes the employment landscape. Against that backdrop, many families still see higher education as an investment in opportunity and are keen to help where they can.”
The survey also suggests growing unease about whether university represents good value for money. Nearly one in three (30%) respondents believe student debt has made university less attractive than it used to be, while 32% believe apprenticeships and vocational routes are now equally valuable alternatives.
While parents remain broadly supportive of higher education, many are becoming more selective about when the financial commitment makes sense, with more than a third (34%) believing education is only worth the cost in specific circumstances.
Kennedy added: “There is still strong belief in the value of a university education, but families are becoming more pragmatic about the financial realities. Rising debt levels, changing career pathways and the growing appeal of apprenticeships are prompting many parents to take a closer look at whether university represents the best route for every young person.”
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