The cost of college increased by up to 92% in five years

At Zurich we understand that planning for your children’s education is important to you. We have been carrying out research into the cost of education in Ireland since 2018. In those seven years, we have collected valuable data on the costs for primary, secondary school and third level education. We have also garnered insights into how much parents spend on their children’s education, how they cover these costs and the factors influencing how much they save.

Saving for college education

As part of Zurich’s annual Cost of Education survey₁, we asked parents would they like their children to enrol in third level education when the time comes? 90% of parents with children in primary or secondary school said yes, they would like their children to go onto third level education.

For parents without a child in third level education, the estimated cost for one child in college for one year is €10,474. However, our research into the cost of college education shows that the cost of third level education can in fact be much higher than this depending on a child’s accommodation costs while in college.

The good news is that 40% of parents are already saving for their child’s potential third level education. And almost 1 in 4 of parents with a savings plan for their child’s future third level education, started saving when their child was born.

The cost of college in 2024 

If you're planning to support your children when they reach university, it might be wise to start saving now. The Zurich Cost of Education research reveals the costs for college students living at home and in rented or student accommodation.

In 2024, the majority (64%) of students studying at third level education, currently live at home which comes as no surprise given the high cost for accommodation for students. The average annual cost of student accommodation for students in third level education was €5,034 and rented accommodation had an average annual cost of €10,067.

The most popular modes of transport for third level students when travelling to and from college is public transport (60%) and by car (39%). The average cost is €550, up €27 from 2023.

When asked if parents support their child financially outside of rent, transport and college fees, 77% of parents said they do provide financial support to their child in third level. The average monthly financial support parents provide is €259, which is approximately €2,331 for the duration of the academic year (nine months).

Almost 3 in 5 think their child is under financial strain in college. A part-time job is the top way that third level students mitigate against financial strain with 66% of parents stating that their child has a job as well as attending college.

College costs increased by over 30% for students living at home, 25% in student accommodation and more than 92% for those renting since 2019 

As mentioned, the overall cost of college depends on where a child resides during their college years. If living at home the costs can be a lot less compared to children living in student or rented accommodation. Regardless of where a child lives while in college, our research shows year-on-year increases across the board. For example, the costs for a child living at home during the college year has increased over 30% compared with five years ago. For those in student accommodation the costs have increased over 25% and for students in rented accommodation that increase amounts to over 92% when comparing 2024 to 2019 costs.

This table below highlights the increased costs for third level education from 2019 to 2024.

Accommodation isn’t the only cost increasing. Transport has also seen significant increases too from an annual cost of €358 in 2020 to €550 in 2024. Parents providing financial assistance to children while they are in college has also risen from €1,260 in 2020 to €2,331 in 2024.

Why is the cost of higher education increasing? 

There are a number of different reasons why the cost of third level education in Ireland is increasing. An obvious one is inflation. Zurich’s 2024 Cost of Education study found that 84% of parents say the cost of rearing their children has increased due to inflation and the average extra monthly financial costs are €489.

In addition, 83% of parents say their family’s financial situation has been negatively impacted by inflation due to increased costs. And 60% of parents say the economic impact of inflation has increased the financial strain of sending their child to third level education.

When asked what the key drivers of financial strain are, 65% of parents of college students said food is the biggest driver of financial pressure followed by transport (52%) fees (51%) books and technology (49%) and accommodation (47%).

Another significant reason why the cost of college is increasing is due to the accommodation crisis. Lack of supply in the housing market means higher students accommodation costs overall and until affordable student accommodation becomes available, this issue shows no sign of abating.

Are parents prepared for children’s higher education costs?

As part of our research, we asked parents how much they think it is going to cost for one child in college for one year. For parents without a child in 3^rd level education, the estimate for one child in college for one year is €10,474, however, our findings suggest that the cost of college education can in fact be much higher. Granted if a child is living at home, the actual cost can be less at €6,033, but if a child is living in student accommodation while in college, parents can expect the overall yearly cost to be €11,067. That figure rises to €16,100 if a child is in rented accommodation during the academic year.

When surveyed, 81% of parents with children in college see the cost of education as a financial burden. To alleviate some of these financial pressures, parents are constantly looking at ways to reduce their children's college costs. However, there are many expenses that are unavoidable.

Thankfully, 50% have family savings in place and helping to cover education costs is still the top savings priority for parents.

It is also encouraging to see the rise in the number of families intending to start saving to plan for the future. In terms of saving for your child’s education, planning ahead and opening a savings account when children are young will help you to manage education costs before they become a significant financial burden. With a Regular Savings plan from Zurich you can gradually build up the funds necessary to support your children's education.

Third level education grants and support 

If you are a parent with a child entering college either in the next few months or you are hoping your child will go to college in a few years, it’s worth finding out about the supports and grants available.

The Student Universal Support Ireland (SUSI) are the national awarding authority for further and higher education grants for full-time courses at Post Leaving Certificate (PLC), undergraduate and postgraduate levels. On the SUSI website you will find all the information you need about higher education grants in Ireland. They also have a useful eligibility indicator tool which will assist you in deciding if you should apply for a student grant.

The Higher Education Authority (HEA) have a free fees initiative whereby tuition fees can be paid for full-time undergraduate students undertaking approved courses in eligible institutions. You’ll find more information on this initiative and the eligibility criteria on the HEA website.

You can claim tax relief on fees₂, including the student contribution fee, but you can’t claim for administration fees. To qualify for relief on fees the course must be from an approved college. The maximum amount you can claim is €7,000 per course, per person, per academic year. Revenue.ie provide useful information on how to claim tax credits for third level tuition fees. You can find out how to calculate the relief here.

If your child is in rented accommodation while in college, you may qualify for the rent tax credit₃. The amount of the credit is 20% of your rent payments in the year, up to a maximum credit of €750 for an individual or €1,500 for a couple who are jointly assessed. You will find information on all the supports and grants available to third level students here.

Cost of college calculator

Parents can use our Cost of College Education Calculator to work out the estimated costs of sending your children to third level and to see how much you might need to save each month to meet these costs. Alternatively, they can try our Financial Health Check for more insights into your overall financial wellbeing.

Sources:

₁Zurich Cost of Education Survey 2024 conducted by iReach Insights.

₂Citizens Information: Tax relief for third-level fees

₃Citizens Information: Rent tax credit

The information contained herein is based on Zurich Life’s understanding of current Revenue practice as at August 2024 and may change in the future.