It is estimated that a total of £165m worth of loans were taken out in the past year to pay for school fees. Research from Sainsbury’s Finance revealed that the average loan amount taken out by its customers for private school fees was £9,065.

They estimate that 18,000 loans were taken out last year for this reason alone. Steven Baillie, head of loans at the group said: “A combination of a rise in the cost of living, more children going to private school and the cost of private education rising could lead to more parents taking out loans to help fund their children’s education.”

This prediction could mean that more loans are taken out to fund a child’s education, as government data reveals that the total UK household expenditure on education fees standing at £8.89 billion in 2006 which is an increase of 32%, compared to the same figures in 2003-2005.