Debt ‘puts students off university’
Fears of increase debt could be putting off students going to university, a new survey suggests.
Research by NatWest bank finds 49 per cent of this year’s university intake say they would be “less inclined” to go to university next year, after top up fees are introduced.
From next September, higher education institutions will be able to set annual charges of up to £3,000 for their courses, which will not be paid back until the student has graduated and is earning more than £15,000 a year.
Critics argue that top-up fees, which will replace upfront tuition fees, will deter students, particularly those from poorer backgrounds, from going to university, but the government has denied this.
Today’s figures suggest money is increasingly becoming an issue for students, with this year’s freshers set to spend £28,600 for a three-year degree course.
The average student debt has increased by £460 to £12,640, and the number of students working part-time to cover the cost has gone up correspondingly.
More worrying are the figures showing three out of four sixth formers starting university this summer are worried about money, compared to 65 per cent who are worried about failing their exams.
“This survey gives the first glimpse at the massive negative impact of fees that is just around the corner,” Lib Dem education spokesman Edward Davey said.
“The government has created a triple whammy where the number of students working is up, parental contributions are up and still graduate debt is up!
“There’s a real danger that we could see university applications falling next year for the first time for years. The Liberal Democrats argue against tuition fees precisely because of the long-term financial problems they generate for graduates, their families and universities.”
However, the NatWest survey also finds that the average starting salary earned by graduates rose by £490 last year – £30 more than the average increase in graduate debt – to £14,090.
Higher education minister Bill Rammell welcomed the survey as an indication that going to university was worth it, and said the government was committed to ensuring everyone had the opportunity to go.
“Under the new arrangements students will study first and pay back when they are earning. They will only pay back nine per cent of their earnings above £15,000 a year,” he said.
“I am committed to making sure that any person with the ability to go to university has the opportunity to do so. We believe that the new financial package available in 2006 will provide these opportunities.”
