A recent survey has found that the cost of students living in privately rented accommodation has risen 90% over the past six years.

The latest Zurich Cost of Education Survey reveals the staggering costs for college students living both at home and in rented or student accommodation.

This is the survey’s sixth iteration, with rising costs seen every year since it began.

Calculator with money.

Director of private clients at Metis Ireland Paddy Andrews told The Pat Kenny Show that third-level students living away from home have the highest expenses.

“If you are unfortunate enough where your child can’t live at home during university and they can’t get student accommodation either, you’re in the third tranche of paying private rent," he said.

"The cost per annum can be up to €16,000 a year,” he said.

“[If your kids live at home] that’s the most economic way and that’s costing in or around €6,000 a year.

“The second tranche, if you get student accommodation - which there is a significant shortfall here – that's between €10,000 and €11,000 a year.”

Annual small gift

Mr Andrews said that for a four-year undergraduate degree where the student or parents have to pay for rented accommodation, costs can come to €65,000.

This figure has seen a 90% increase since the first year of the survey.

These costs can be particularly difficult for those trying to put multiple children through third-level education.

Photo via Pixabay

Mr Andrews recommended that parents use the annual small gift exemption to gift up to €3,000 per parent a year to their child to save for college, starting from the age of around eight or 10.

“Outside of that, if they’re not fortunate to be in that position... there's the children’s allowance,” he said.

“That’s only €140 a month but the sooner you start putting that aside, whether it’s more short-term... or if you have 10-15 years before your children are going to university, you might be able to invest that and generate investment returns.”

No 'silver bullet'

However, Mr Andrews said there is no ‘silver bullet’ solution to this issue.

“The challenge that we see, particularly for young families is there’s no point in having this wonderful long-term savings plan for education when we need creche costs, my mortgage – life gets in the way of these wonderful long-term plans,” he said.

“I suppose the easiest thing is to have a chat and acknowledge that, see that this cost is going to be there."

Mr Andrews said that of the families surveyed, over 90% saw their children progress from secondary school to college.

Main image: Hands with 100 Euro banknotes, which are counted and put on a table. Image: Klaus Ohlenschlaeger / Alamy. 5 January 2018