Student Loan 2015 Discussion

tyllwyd

kayr wrote: »

Apologies if this is in the wrong place or it's old news but just saw it in The Guardian - thought it was an interesting development.

http://www.guardian.co.uk/education/2011/oct/17/coventry-university-college-half-price-degree

I agree, it is interesting, and I think there are bound to be more options like this. It makes sense to me - with tuition fees of £27K for a three year course, plus living costs, there must be scope for offering alternatives to students who don't find the traditional route attractive any more.

Oldernotwiser

kayr wrote: »

Apologies if this is in the wrong place or it's old news but just saw it in The Guardian - thought it was an interesting development.

http://www.guardian.co.uk/education/2011/oct/17/coventry-university-college-half-price-degree

Interesting.

WISHIWASRICH_2

Looks like at the very least 57/140 Unis will be charging less than £7500

As many as 28 universities in England are considering lowering the fees they have said they will charge from next year.

http://www.bbc.co.uk/news/education-15389378

The National Union of Students (NUS) said the hastily drawn-up plans had plunged this year's already troubled application process into further chaos as many students were in the midst of deciding where they wanted to go next year.

Those likely to be affected will be applying to so-called "middle-ranking" universities

At present, only 29 out of 140 institutions charge less than £7,500 a year.

I think that means that the above 29 plus the new 28 = 57/140 will be charging less than £7500 a year.

http://www.independent.co.uk/news/education/education-news/universities-given-14-days-to-justify-fees-2373800.html

I do wonder if more will now decide to follow?

Lokolo

WISHIWASRICH wrote: »

Looks like at the very least 57/140 Unis will be charging less than £7500



http://www.bbc.co.uk/news/education-15389378



I think that means that the above 29 plus the new 28 = 57/140 will be charging less than £7500 a year.

http://www.independent.co.uk/news/education/education-news/universities-given-14-days-to-justify-fees-2373800.html

I do wonder if more will now decide to follow?

I wouldn't be surprised, otherwise universities will end up becoming bankrupt. The thing I question is whether the amounts difference would actually have much of an effect.

The difference from £9k compared to £7.5k means your overall debt at the end of a course would be £43,500 instead of £39,000. Given how little difference there is, will people really choose universities based on cost? I see it being a small priority compared to things like location, course, contacts and teaching.

If the difference were something like £9k and £5k, then yes I would think it would have a greater effect, but universities aren't going to go that low as it makes it unaffordable.

WISHIWASRICH_2

Lokolo wrote: »

The thing I question is whether the amounts difference would actually have much of an effect.

The difference from £9k compared to £7.5k means your overall debt at the end of a course would be £43,500 instead of £39,000. Given how little difference there is, will people really choose universities based on cost? I see it being a small priority compared to things like location, course, contacts and teaching.

If the difference were something like £9k and £5k, then yes I would think it would have a greater effect, but universities aren't going to go that low as it makes it unaffordable.

£4,500 is a lot of money imho.

Also, if it was the difference between choosing say UWE Bristol vs Bath Spa is there really any difference? Liverpool John Moores vs Manchester Met? If a student is looking for a reason to pick one over the other, students will probably pick the cheapest.

Also, it makes a big difference to the amount of money the government has to borrow if fees are £7500 vs £9000k. So the government will have less debt in the long run, so the students off 2012 will have to pay less tax in the future.

tyllwyd

Lokolo wrote: »

... The difference from £9k compared to £7.5k means your overall debt at the end of a course would be £43,500 instead of £39,000. Given how little difference there is, will people really choose universities based on cost? I see it being a small priority compared to things like location, course, contacts and teaching.

If the difference were something like £9k and £5k, then yes I would think it would have a greater effect, but universities aren't going to go that low as it makes it unaffordable.

I agree that a bigger difference between the initial tuition fee figure would have a greater effect, but don't forget that there is quite a high interest rate being applied. So even at the end of the course, the difference will be a bit more than £4.5K, and over time that gap will only increase. If you have any hope of paying off the loan before the 30 years are up, you are going to have a better chance of achieving that if the initial fees are lower.

Oldernotwiser

tyllwyd wrote: »

If you have any hope of paying off the loan before the 30 years are up, you are going to have a better chance of achieving that if the initial fees are lower.

But does it matter?

Lokolo

WISHIWASRICH wrote: »

£4,500 is a lot of money imho.

Also, if it was the difference between choosing say UWE Bristol vs Bath Spa is there really any difference? Liverpool John Moores vs Manchester Met? If a student is looking for a reason to pick one over the other, students will probably pick the cheapest.

Also, it makes a big difference to the amount of money the government has to borrow if fees are £7500 vs £9000k. So the government will have less debt in the long run, so the students off 2012 will have to pay less tax in the future.

£4,500 is not a lot of money when we are talking about £40ks worth, its 10%, not going to make a little bit of difference in the grand scheme of things.

And thats my point - where will students cut the line? Will a student choose to go to Thames Valley where they may charge £6k, compared to Oxbridge at £9k? I cannot see it having a great impact in the decision making process.

Is the money aspect really going to make a difference? It won't. If a student loves a university, the cost will not change their decision when we are talking about these amounts.

tyllwyd

Oldernotwiser wrote: »

But does it matter?

Yes, it does matter if you want to stop making student loan repayments out of your salary. If I said to you, would you rather pay me x per cent of your income for 20 years, or x per cent of your income for 30 years, everything else being equal, which would you choose?

Lokolo

tyllwyd wrote: »

Yes, it does matter if you want to stop making student loan repayments out of your salary. If I said to you, would you rather pay me x per cent of your income for 20 years, or x per cent of your income for 30 years, everything else being equal, which would you choose?

But if you look at the calculator there is very little difference (actually no difference until you reach higher earners) between £7.5k and £9k fees and what's paid back.