The Rise of Third Level Education Costs

Third Level Education Costs Are Rising, Are you Ready?

Zurich Life recently published their annual “Cost of Education In Ireland” report for 2024.

The Cost of Education 2024 | Zurich Ireland

The report finds that the cost of putting a student through third level education for a year while living in rented accommodation has doubled over the last five years.

“Lots of parents will tell you that the first challenge is to actually find rented accommodation for their child. And for the lucky ones who manage to secure rented accommodation, the annual cost is an eye watering €16,100 per annum.” Carl Widger, Managing Director

A child attending third level for 4 years will cost the parents €64,400, and this assumes that prices do not continue to rise. Or that the child doesn’t continue on and do a Masters for a 5^th year which has become much more common.

From a financial planning point of view, this has a major impact on a household’s spending.

For example, if you have three kids attending third level education for 4 years, the family needs to fund €193,200.

Again, this assumes that costs do not continue to rise. It is important to point out that is paid out of after tax income.

What Can Parents Do To Be Ready For Third Level Education Costs?

1. Start savings as early as possible. Can you save the children’s allowance from the beginning? It might not be possible for every family to do this, but those that do manage it will be more than happy that they did.
2. Check if you are eligible for any student grants: https://www.citizensinformation.ie/en/education/third-level-education/fees-and-supports-for-third-level-education/
3. Is it possible to secure small gift exemption from grandparents? This can be a great way of fast tracking receiving money from grandparents – obviously where circumstances allow.
4. Apply for a loan from the credit union. It may be slightly more expensive than the traditional banks, but it can be much more flexible and lump sums can be paid off if circumstances change or loan periods can be extended.
5. Get a financial plan done as early as possible to identify the costs and put a plan in place to cover the costs. In reality, a combination of all the measures above may be required.

Having a plan in place will give you peace of mind and ensure that as a family, everyone gets to enjoy this new chapter. The other option is that this amazing experience for the child becomes a stressor for the parents.

To discuss your plan, reach out and we will bring you through your options to get started for this time ahead.