• Premium Credit sees total lending through its School Fee Plan rise by 24% and the average amount borrowed increase by 17%

Parents are increasingly looking to spread the cost of private school as fees continue to increase, new data from the leading finance company Premium Credit behind School Fee Plan, shows.

The total lent last year through its School Fee Plan (SFP) is 24% higher than in 2021 and the average amount parents borrow has increased by 17%.

Total lending increased by 10% last year compared to 2022 and the amount of funding provided through SFP in the first three months of this year is 9% more than the same period last year.

The number of clients using SFP last year was 6% higher than in 2021 while the average amount of funding this year is around £20,300.

Private school fees are rising at between 3% and 4% a year with average* day school fees around £16,374 a year and boarding schools around £39,000 a year. Day fees at boarding schools are around £21,500 a year.

For over 25 years, SFP has helped parents finance their children’s independent school fees by enabling them to spread the cost rather than paying a lump sum each term. SFP is the convenient and manageable way for parents to pay for independent school fees and extras such as music tuition and trips. It splits the cost into regular monthly direct debits, like any other household bill.

The process of applying for a SFP for both parents and schools is seamless. Parents apply to open their account online before the beginning of any term. If the application is approved, SFP will notify the parents and the school. SFP sends the full payment to the school at the start of each term.

Stewart Ward, Director Education Sector & Head of School Fee Plan, Premium Credit said: “Parents with children at private schools are increasingly looking to make fee payments more manageable while also grappling with the general rise in the cost of living. The number of parents taking out plans with us to help fund their children’s education has nearly doubled in the past two years in response.

For many, it makes sense to spread this cost, even if they can afford to make the payments every term.”

For further information on SFP, please visit myschoolfeeplan.com

Notes to editors:
• *ISC census and annual report 2023