Parents are taking out personal loans in order to provide financial support for their children at university, according to new research.

Some £58.3 million worth of personal loans will be taken out this year by parents, Sainsbury’s Bank has estimated.

The bank claimed that this increase has been seen in the wake of tuition fees from £1,175 to £3,000.

This could cause a 17 to 21 per cent rise in overall living costs for many students, which may be covered by personal loans.

However, Sainsbury’s Bank has warned that parents should shop around for the best personal loan for their circumstances, to avoid paying over the odds.

Around 40 per cent of consumers do not receive more than one quote when looking for personal loans, it asserted.

Steven Baillie, loans manager at Sainsbury’s Bank, said: “As students go back to university, many will face a significant increase in their living expenses.

“As well as students taking on paid employment to help cover this cost, some of their parents are also taking out personal loans to help.”

Jemma Smith, a spokesperson for Apacs, recently claimed that credit cards could be a useful financial tool for students to manage their finances .