As a new academic year begins in the UAE , many expatriate parents are relying on personal loans and credit card withdrawals to meet the rising costs of school and college tuition , transportation, and other back-to-school expenses.

Many schools in the UAE require tuition and transport fees to be paid quarterly. When combined with the cost of books, uniforms, stationery, and other necessities, the total financial burden can be substantial, prompting some families to seek assistance from banks and financial institutions.

Dubai resident S. Kanwal took out a personal loan of Dh60,000 to fund her son's education after he was forced to skip a year of school due to financial hardship.

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“My son missed an entire academic year because of the challenges I was facing with my job and finances,” she explained.“Now that I'm in a better financial position, I decided to take a Dh60,000 loan to pay his full-year fees in advance. This ensures he doesn't fall behind another year.”

She plans to repay the loan over the next three years.

Similarly, Noor Ahmed, a 45-year-old Indian expat in Dubai, secured a Dh28,000 loan to manage his children's education costs.

“I used the loan to cover tuition fees for my four children 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 cost quickly added up.”

Ahmed added that he preferred to borrow from the bank rather than ask friends or family for financial assistance.

Adding to the financial pressure, several schools in the UAE have increased tuition fees by around 2.5 per cent for the 2025–26 academic year, intensifying the strain 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 sector.“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 are finding that bank loans and credit cards are becoming a necessary-though often last-resort-solution to keep their children in school.

Rising education expenses

Zurich International's most recent survey with YouGov found that 63 per cent of UAE parents expect education expenses to reach Dh250,000 to Dh600,000 by the time their child enters university. This figure excludes additional costs, such as healthcare, childcare, housing, and extracurricular activities, all of which significantly contribute to the overall financial burden.

Highlighting the importance of financial protection for parents for education, David Denton-Cardew, head of propositions, Zurich International Life Middle East, said the cost of higher education in the UAE is rising faster than many families anticipate.

“Without early preparation, families may struggle to cover tuition fees or maintain their desired education path, particularly in a landscape dominated by private institutions and rising living costs. Traditional savings alone may not be enough, as they often fail to keep pace with inflation and the accelerating cost of education,” David said.

He stressed that building financial protection into education planning is essential.

“Dual-purpose solutions, such as education savings plans combined with life insurance, provide both growth and security. They ensure that even if unexpected events occur, children's education remains on track. According to our survey, 87 per cent of parents value plans that offer this dual benefit, reflecting a growing awareness of the importance of safeguarding both family and educational futures,” he said.

David noted 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, allows families to navigate rising costs with confidence. In today's environment, a proactive, comprehensive approach to education planning is no longer optional; it is essential,” he said.

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