The founder and CEO of fintech business Secta Finance has said the way parents pay private school fees is “no longer fit for purpose”.
The average tuition for independent schools is now £15,191 a year for day pupils and £36,000 for boarders.
“[Parents] are still paying large lump sums, sometimes, with expensive and inflexible means using credit cards or unsecured loans, that simply is not sustainable,” said Joe Hill.
“We want to create manageable and affordable finance solutions for school fees, much like the financial products people consider when buying a house or a car.”
We want to create manageable and affordable finance solutions for school fees, much like the financial products people consider when buying a house or a car – Joe Hill, Secta Finance
Secta Finance recently launched, with three finance options, to enable more families to experience private education, and create more sustainable relationships between parents and schools.
The finance options – Secta Flexiplan, Secta Advance Plan or a remortgage – enable parents to spread the cost of fees over many years. Secta Finance is working with independent schools who are keen to offer more options to their parents.
Hill said: “We are creating opportunities for parents, for schools and for children. By offering finance solutions which are affordable and simple to understand, we will create a sustainable path for better outcomes.
“Our strategic aim is to expand the opportunity of private education to many more families and enable a sustainable relationship for parents and schools through the products that we offer.”