Low interest rate loans to cover educational costs from primary school through graduate school could be a lifesaver for those grappling with higher tuition and education costs.

The Bank of Bermuda announced this week that it would be making its low interest rate education loans, which were previously available only for university studies, available to parents and students seeking to fund any level of education.

The development will surely be welcome news as it comes on the heel of a recent spike in education costs.

A report by Government?s Statistics department said a 3.8 percent increase in inflation for September could be largely attributed to stiff increases in the cost of education.

In September there was an 11.8 percent jump in local private school fees while tuition at overseas colleges and universities rose 7.3 percent.

Although the bank unveiled its lower interest rate education loans in May of this year, loans were earmarked for the financing of university study with interest rates for secured loans being as low as 6.5 percent.

Now the bank is giving out the loans not only for university education but also for private school costs either locally or at a boarding school and have extended it to cover correspondence courses and professional development and designations.

At the same time, interest rate levels have dropped for the loans with the bank currently carrying a 5.75 percent interest rate if secured or 6.75 percent for unsecured loans.

The rates were cited as ?extremely competitive? by Frederica Forth, business development manager of banking and lending products.

Ms Forth was speaking with ahead of special seminars on education loans being hosted by the bank next Monday, Tuesday and Wednesday, which will give prospective clients a chance to get information and ask questions of loan officers present.

Although session spots are filling rapidly, Ms Forth ? who will give the seminar presentation and be open to questions on the programme ? said there were still some places left with the bank able to accommodate 150 people over the three nights.

Ms Forth said: ?Rates have gone up for education here and this may also be the case for overseas education. Recognising that some may need help paying for their fees at say, Bermuda College, we decided it should not be limited to university study only.?

And the funding can now also be applied to a wide range of other costs including air fare, accommodation, books and online courses.

Ms Forth added that loans can be secured ? with those loans getting a lower interest rate ? with cash, land, developed land, vehicles, boats and through a Government guarantee programme.

She said it is also possible for some loans, depending on particular circumstances, to have interest payments deferred for a period of time.

Educational loans may not be the only option for those facing a crunch when it comes to money for school.

Homeowners also have the option of applying for a home equity line allowing them to draw funds as needed and paying interest only on that amount.

When asked if the educational loan programme would be kept in place under HSBC Ms Forth said: ?I cannot predict what the policy will be under HSBC, but the Bank of Bermuda prides itself on being a community bank, and I understand that HSBC is that as well.?understands that at least one other Island bank ? the Bank of Butterfield ? also offers educational loans, with lending being structured on a case by case basis. An example of that approach is Butterfield offering some students or parents the option of paying only the loan?s interest for a year or two.