Huge student fees to limit house prices further?

Lokolo

toby3000 wrote: »

Isn't the real problem going to be the increased interest rates? I thought they were going to charge Inflation+2%? If so, it significantly changes the situation. At the moment, there is no reason for me to use savings to pay off my student loan, but if I was paying 2% more interest there'd be no point it having savings.

The problem for universities will be the market economy aspect of it- noone's going to pay £6,000 to go to Edgehill or somewhere, but ofcourse the less they can charge the worse they'll be. They also seem willing to allow universities to fail; I think the University of Cumbria & the Leeds Former-Poly are both in severe financial problems, but what happens if you're in second year at a uni that closes?

I did think this. My course no doubt has VERY good value for money. I am doing Computer Games Programming. All the PCs are £1k+ builds, we have PS3 development kits, Xbox Dev Kits, PSP Dev Kits, Andoird Dev phones, Wii's etc.etc.

Given I am paying £3.5k to use all this, which should also include admin costs (lecturers etc.) I am not sure how the uni would get students in (as generally its not a very good uni, just my course is awesome here!) to do the course if they charge £10k.

des_cartes

brit1234 wrote: »

Huge student fees to limit house prices further?

Does any one believe that these high university fees of £12,000 a year excluding rents, food and booze will limit house prices.

Just imagine going up to your bank manager with a £50k student debt asking for a mortgage. Let alone saving a 25% deposit.

If this goes through house prices may go even lower as former students represent what I reckon is a significant section of ftb. They underpin the whole of the bottom of the property market.

What's your thoughts?

Going forward, it looks as though graduates will be the only ones earning above minimum wage levels. If those same people are having to pay back 50 grand in student debt it makes the prospects for house prices grim. Of course we could go back to the good old days of lending people stupid money to keep house prices high but that would need someone of the genius of Gordon 'loadsamoney' Brown to be pm and right now that doesn't seem likely.

olly300

Lokolo wrote: »

I did think this. My course no doubt has VERY good value for money. I am doing Computer Games Programming. All the PCs are £1k+ builds, we have PS3 development kits, Xbox Dev Kits, PSP Dev Kits, Andoird Dev phones, Wii's etc.etc.

Given I am paying £3.5k to use all this, which should also include admin costs (lecturers etc.) I am not sure how the uni would get students in (as generally its not a very good uni, just my course is awesome here!) to do the course if they charge £10k.

They would just promote and run that course and courses like that only.

What I suspect will happen is they will start closing courses where they can't pretend they can complete with traditional universities.

THE_GHOULS_PARADISE

brit1234 wrote: »

Huge student fees to limit house prices further?

Does any one believe that these high university fees of £12,000 a year excluding rents, food and booze will limit house prices.

Just imagine going up to your bank manager with a £50k student debt asking for a mortgage. Let alone saving a 25% deposit.

If this goes through house prices may go even lower as former students represent what I reckon is a significant section of ftb. They underpin the whole of the bottom of the property market.

What's your thoughts?

THlS THREAD IS DISINGENUOUS AS IT CLEARLY BEEN STATED THE MAXIMUM A STUDENT WOULD PAY IS £7000 A YEAR. A CLEAR £5000 UNDER THE OP SCAREMONGERING. MODS PLEASE INITIATE LOCKDOWN ON THESE LIES.

THE_GHOULS_PARADISE

Lokolo wrote: »

I did think this. My course no doubt has VERY good value for money. I am doing Computer Games Programming. All the PCs are £1k+ builds, we have PS3 development kits, Xbox Dev Kits, PSP Dev Kits, Andoird Dev phones, Wii's etc.etc.

Given I am paying £3.5k to use all this, which should also include admin costs (lecturers etc.) I am not sure how the uni would get students in (as generally its not a very good uni, just my course is awesome here!) to do the course if they charge £10k.

ALL STUDENTS THlNK THEY ARE DOING AN 'AWESOME' CAREER UNTIL THEY UND UP ON THE STUDENT LANDFILL OF OF NOTHINGNESS. BUT THE BEST OF LUCK SECURING A JOB PLAYING GAMES ALL DAY LONG.

misskool

tomterm8 wrote: »

I think if the government was sensible, it would start establishing endownment trusts like the US has, with significant tax breaks for those who donate, to fund tuition fees for the brightest students in the most worthwhile degrees.

Normally, with modern degrees they are affiliated with CATS, so if your university fails you would be able to transfer earned credit over to other degrees.

There a couple of differences as to why it would be difficult to replicate that here. First off is the amount of income tax that is paid. Max 35% when you earn over $350,000 (£220k-ish). Here you get taxed 50% for earning over £150k. So you expect more from the government such as provision for higher education, and the NHS.

There is also a culture of saving for higher education in the US. Middle class couples who have children have trust funds (with their associated tax breaks) and start from birth. But the current government now has scrapped the incentives although presume there are some tax incentives still for saving for young children? (not sure on this and will be corrected).

And finally, the deal breaker is that they are used to giving to alumni in the states. Here, there isn't such a fondness for the university you graduated from and having worked a part time job raising funds from alumni you can be assured that people find it offensive that a publicly funded university (which is all of them in the UK) should be asking them for money.

Lokolo wrote: »

I did think this. My course no doubt has VERY good value for money. I am doing Computer Games Programming. All the PCs are £1k+ builds, we have PS3 development kits, Xbox Dev Kits, PSP Dev Kits, Andoird Dev phones, Wii's etc.etc.

Given I am paying £3.5k to use all this, which should also include admin costs (lecturers etc.) I am not sure how the uni would get students in (as generally its not a very good uni, just my course is awesome here!) to do the course if they charge £10k.

If your course has any international students, then they will be paying £10k and feel that they are justified to do so.

lostinrates

misskool wrote: »

There a couple of differences as to why it would be difficult to replicate that here. First off is the amount of income tax that is paid. Max 35% when you earn over $350,000 (£220k-ish). Here you get taxed 50% for earning over £150k. So you expect more from the government such as provision for higher education, and the NHS.

There is also a culture of saving for higher education in the US. Middle class couples who have children have trust funds (with their associated tax breaks) and start from birth. But the current government now has scrapped the incentives although presume there are some tax incentives still for saving for young children? (not sure on this and will be corrected).

And finally, the deal breaker is that they are used to giving to alumni in the states. Here, there isn't such a fondness for the university you graduated from and having worked a part time job raising funds from alumni you can be assured that people find it offensive that a publicly funded university (which is all of them in the UK) should be asking them for money.

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misskool, I agree with ALL of this. I note the difference in how much I am ..well ..never contacted for money by my uni and dh is frequently...perhaps its just the ''good ones'' that will do the asking?

JonnyBravo

brit1234 wrote: »

What's your thoughts?

Bar your silly fonts and pictures I actually agree with you wholeheartedly for once. :eek:

Yes it will prove another drag on prices. It's clearly going to play out for years but it's another reduction on the free money in system down the line.
That of course = lower house prices*

*Lower house prices than they would otherwise be without this scheme that is. I've no doubt inflation will of course lead to nominally higher prices.

misskool

lostinrates wrote: »

misskool, I agree with ALL of this. I note the difference in how much I am ..well ..never contacted for money by my uni and dh is frequently...perhaps its just the ''good ones'' that will do the asking?

I'm contacted by both my universities frequently to donate to their alumni fund Maybe I should have chosen universities based on how often they contact their alumni. :rotfl:

On a more serious note, it will be more common for all universities to ask for funding (or they will just have lower fees that students can and will pay for).

I'm just wondering when a public funded university will turn into a private one like in the states. It's interesting that the more "reputable" universities from the States are the private ones. The state universities appear to be second best.

vivatifosi

misskool wrote: »

I'm contacted by both my universities frequently to donate to their alumni fund Maybe I should have chosen universities based on how often they contact their alumni.

Mine too. Are yours Russell Group as well missk? I swear its not just research they get together over but methods of getting to their alumni.

Having said that, imo the Russell Group must not lose its prestige in research, so if that's what it takes...