As a fresh academic year kicks off in the UAE, numerous expatriate parents are depending on personal loans and credit card advances to handle the escalating costs of schooling and college tuition, transportation, and other back-to-school expenditures.
In the UAE, many educational institutions demand that tuition and transport fees be settled quarterly. Coupled with the expense of books, uniforms, stationery, and other essentials, the financial load can be overwhelming, leading some families to seek help from banks and financial services.
Dubai resident S. Kanwal took out a personal loan of Dh60,000 to finance her son’s education after he had to skip a school year due to financial difficulties.
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“My son missed a whole academic year because of the challenges I faced with my job and finances,” she explained. “Now that I’m more financially stable, I opted for a Dh60,000 loan to pay his full-year fees in advance, ensuring he doesn’t lag another year.”
She plans to repay the loan over the next three years.
Similarly, Noor Ahmed, a 45-year-old Indian expat in Dubai, obtained a Dh28,000 loan to manage his children’s education costs.
“I used the loan to cover my four children’s tuition fees for the first quarter of the academic year, along with some outstanding dues from last year,” he said. “Three of my kids are in high school and college. Including transportation and other related expenses, the costs quickly added up.”
Ahmed mentioned that he preferred borrowing from the bank rather than seeking financial help from friends or family.
Adding to the financial strain, several schools in the UAE have increased tuition fees by around 2.5% for the 2025–26 academic year, intensifying the burden on already stretched family budgets.
Anum Khan, another Dubai resident, turned to her credit card to cover school expenses for her six-year-old son.
“I withdrew Dh11,500 from my credit card to pay for tuition and transportation,” said Khan, who works in the insurance field. “We also had to renew our rental lease at the same time, which left us with limited cash flow. Monthly installments will help me manage the repayment over the coming months.”
With school-related costs continuing to rise, many families across the UAE find that bank loans and credit cards are becoming essential—though often a last-resort—solution to keep their children in school.
Escalating education expenses
A recent survey by Zurich International with YouGov revealed that 63% of UAE parents anticipate education expenses to reach Dh250,000 to Dh600,000 by the time their child enters university. This figure excludes additional costs like healthcare, childcare, housing, and extracurricular activities, all substantially contributing to the overall financial burden.
Emphasizing the need for financial protection for parents regarding education, David Denton-Cardew, head of propositions, Zurich International Life Middle East, noted that higher education costs in the UAE are climbing faster than many families expect.
“Without early preparation, families may find it challenging to cover tuition fees or maintain their preferred education path, especially in a landscape dominated by private institutions and rising living costs. Traditional savings alone may not suffice, as they often fail to keep pace with inflation and the accelerating cost of education,” David said.
He emphasized the importance of integrating financial protection into education planning.
“Dual-purpose solutions, like education savings plans combined with life insurance, provide both growth and security. They ensure that even if unexpected events occur, children’s education stays on track. According to our survey, 87% of parents value plans offering this dual benefit, reflecting a growing awareness of the importance of safeguarding both family and educational futures,” he said.
David highlighted that starting early and using structured, strategic plans can make a significant difference. “Allocating a consistent portion of income to education savings, combined with investment growth and protective coverage, enables families to navigate rising costs with confidence. In today’s environment, a proactive, comprehensive approach to education planning is not optional; it is essential,” he said.
