Private school offers first ‘mortgage-style’ fees scheme

Fernhill School, based in Glasgow, will allow parents to continue paying off fees as long as four years after their child has left the school. This is from the Telegraph…

A leading independent girls’ school has announced an innovative solution to the rising cost of private education by allowing parents to spread their payment of school fees over a 10-year period.

The scheme being offered by Fernhill School, a private Catholic school on the outskirts of Glasgow, will allow parents to pay the full amount of their child’s education over a longer period, reducing monthly payments by up to 50 per cent. The scheme will not charge any interest for the delayed payment option.

Parents who send their daughter to the senior school for the full six years will be able to pay £6,000 per year over a 10-year period. The school’s fees are £8,976 per year for senior school day pupils.

“We think there must be a lot of people who’d be happy to pay £500 a month but can’t afford £800,” said Fernhill School governor Dennis Rooney. “Your best investment may be your child’s education, but parents may only be able to afford it over a longer period of time.”

The school’s governors said the scheme will not require any collateral and will not use a commercial lender.

The announcement of the repayment scheme follows news that fees at leading independent schools are increasing far above the rate of inflation. According to a study by the Good Schools Guide, top schools across the country are increasingly relying on wealthy international parents who can afford higher fees, leaving many middle-class families unable to afford private education.

Private finance companies currently offer packages enabling parents to spread the cost of fees over a longer time period, though this usually involves interest payments which increase the overall cost of schooling.

The new scheme from Fernhill – which will allows parents to pay half the school fees every year rather than the full amount – is unusual in not charging any interest, and in being offered directly from the school itself.

More at:  Private school offers first ‘mortgage-style’ fees scheme

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