Universities give discounts on tuition fees paid up front

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Universities are offering discounts of up to five per cent to students who pay their tuition fees up front.

The task force on student finance, headed by Martin Lewis, the financial expert, and made up representatives from Universities UK and the National Union of Students, cautioned against paying fees up front.
It said parents could be wasting their money if their child becomes a low paid artist or full-time parent and never has a job which pays more than £21,000 a year – the level at which loan repayments are triggered.
“Unless they are guaranteed a lifetime of high pay, it makes financial sense to put the cash in a high paying ISA or savings account during studies and take the loan out,” the task force said.
“Afterwards if it looks like the loan will have to be repaid, clear the debt then. Or, alternatively, it may simply be better used towards lowering a mortgage or car loan, which are worse and costlier forms of debt.”

http://www.telegraph.co.uk/education/universityeducation/9307476/Universities-give-discounts-on-tuition-fees-paid-up-front.html

Dunroamin

Still seems to me to make more sense not to pay fees up front.