Loans for private school fees

Rising fees, practical finance choices

Private education in the UK has become materially more expensive in 2025. Day school fees now average around £7,382 per term, or roughly £22,000 per year, up 22.6% in a single cycle. That jump outpaces the 20% VAT introduced in January and follows smaller rises in 2024 and 2023. Some elite schools have raised annual fees by close to £11,000, while others are applying phased increases across spring and autumn terms.

The result is pressure on household budgets and on school rolls. England counts about 573,000 pupils in private schools, down by 11,000 year on year, with a number of schools reported at risk of closure. Bursary provision has increased to cushion exits, but support is finite and unevenly distributed.

What matters for parents is the lifetime cost. A full day school journey from 5 to 18 now averages around £461,430 when you include VAT and modest annual rises. Introduce boarding from age 12 and the projection rises to roughly £667,900. London families can face up to £95,700 more than the national average over 13 years, with the South East close behind. Even the broader national benchmark shows the direction of travel: average annual private fees are now about £18,456.

Understanding APR is not just about percentages - it is about what you will pay in real terms over the years your child is enrolled.

Beyond tuition, factor in essentials. Day schools commonly sit between £15,000 and £40,000 per year depending on phase. Uniforms might add £500 to £2,000, and trips or activities can add £1,000 to £5,000 annually. New business rates exposure from April 2025 is set to compound VAT effects, so further fee pressure is plausible. The Treasury expects VAT on fees to raise about £1.6bn a year and to shift more pupils into state schools, largely in England.

In this environment, some families are seeking structured finance. Kandoo is a UK-based retail finance broker that helps you compare personal and homeowner loans from multiple lenders quickly, so you can plan with confidence and avoid hurried decisions.

Your goal is stability for your child - our goal is clarity for your budget.

Who should consider this

If you are committed to independent education but facing larger than expected increases this year, shortfall finance can bridge the gap responsibly. Parents planning an intake this September may also need funds to cover deposits, registration and initial fees in one go. Families with variable income - such as self-employed professionals, contractors and small business owners - often prefer predictable monthly repayments rather than raiding investments at an awkward time. Even if you have savings, keeping an emergency buffer while using a well-priced loan can be sensible, especially if cashing in investments would trigger tax or market timing risks.

Ways to fund fees

1. Unsecured personal loan over 1-7 years for predictable repayments.

2. Secured homeowner loan for larger borrowing and longer terms.

3. School payment plan with monthly or termly instalments.

4. Remortgage or further advance to spread costs across a mortgage.

5. Family loan or gifted support with clear written terms.

6. Use of savings or investment drawdown with tax planning.

7. 0% purchase or money transfer card for short-term staging.

8. Bursaries, scholarships and fee remission where eligible.

Money in, money out

Can you qualify?

Lenders look for affordability first. They assess your income after tax, regular outgoings, other credit commitments and how the new repayment fits. You will usually need a UK address history, a stable income profile and a credit file that supports the amount requested. For secured loans, sufficient home equity and acceptable loan-to-value are critical, alongside the property type and your mortgage status. If your child attends a school with staged fee rises, factor those into the amount and term you seek so you are not refinancing mid-year.

Self-employed applicants should be ready with SA302s or accountant-signed accounts and recent bank statements. Professionals paid by bonuses or dividends may need to evidence track record over multiple years. For joint applications, combined income can strengthen affordability. Kandoo can introduce you to lenders open to a range of credit profiles and terms, helping you compare APRs, fees and total amounts payable before you decide. Remember that a soft search is often available at the outset so you can gauge eligibility without affecting your credit score.

From enquiry to funds

1. Share a budget number and timing with Kandoo.

2. Check soft-search eligibility across suitable lenders.

3. Compare APRs, terms, fees and total payable.

4. Upload ID, income and bank statements securely.

5. Receive an offer and review key documents.

6. Sign electronically and confirm drawdown date.

7. Funds released to you or directly to school.

8. Set up Direct Debit and track repayments.

Upsides and downsides

Look before you leap

Run the numbers over the full school journey, not just this term. Fees have risen sharply after VAT and may continue to move as schools face business rates and operating cost pressures. Build in extras like uniforms, music lessons, travel and trips, which can add several thousand pounds a year. Stress-test your budget for rate rises and income shocks so repayments remain comfortable. If you have investments, compare their expected returns with your loan APR and consider tax. Talk to the school about bursaries or sibling discounts even if you think you are borderline, and ask how fees are likely to change over the next two to three years. A little clarity now can prevent rushed, expensive decisions later.

Alternatives to borrowing

1. Apply for bursaries, scholarships or hardship funds at the school.

2. Adjust timetable - choose day school now, defer boarding.

3. Use Child Trust Fund or Junior ISA withdrawals where allowed.

4. Redirect non-essential spending or pause large purchases.

5. Seek employer support or alumni grants if available.

6. Split costs with family using a formal agreement.

Questions parents ask

Q: How much have fees actually risen this year? A: Day school fees are averaging about £22,000 a year, up roughly 22.6% on last year, with some schools applying higher increases and others phasing them.

Q: What is the real lifetime cost I should plan for? A: A typical day school journey from 5 to 18 is now projected around £461,430. If boarding starts at 12, the estimate rises to about £667,900, with London often higher.

Q: Is a remortgage always cheaper than a personal loan? A: Not necessarily. A mortgage rate may be lower, but stretching school fees over 20-plus years can increase total interest significantly. Compare total payable, not just the monthly amount.

Q: Will taking a loan hurt my chance of bursary support? A: Bursaries are assessed on means. A loan that strengthens short-term liquidity is rarely negative, but disclosing accurate income, assets and commitments is essential.

Q: How quickly can I get funds? A: Many unsecured loans complete within days once documents are verified. Secured loans and remortgages take longer due to valuations and legal checks, typically weeks rather than days.

Q: What credit score do I need? A: Lenders do not publish a single cut-off, but a clean recent history, stable income and low utilisation help. Kandoo can run soft searches to indicate eligibility without a mark on your file.

What to do now

Estimate your annual and lifetime fee needs, including extras, then set a monthly budget you can live with. Share this with Kandoo to compare live loan options, terms and total costs. We will help you weigh borrowing against cashing in savings so you can fund your child’s education with confidence.

Important information

Kandoo is a credit broker, not a lender. Credit is subject to status, affordability and terms. Rates and product availability can change. Secured borrowing uses your home as security and missed payments risk repossession. Always consider independent financial advice where appropriate.