The hike in tuition fees shortly after the coalition came to power caused uproar among students, academics and higher education establishments. The rise in fees from £3000 to £9000 a year has very much remained a hot topic for debate and is frequently in the news.
Under the new tuition fee system, students only begin to repay their loans when they are earning over £21,000 and the repayments are linked to their earnings. In an article published in the ‘Guardian’ newspaper today it claims that the number of graduates failing to repay their student loan is increasing at an alarming rate. Students are failing to repay their loans due to many not earning enough money, this means they fall below the £21,00 repayment threshold. They also face increased competition for graduate jobs due to the over-supply of those with degrees. Many university courses are now trying to create industry links to make their graduates more employable. This is a remarkable turnaround in comparison to 1999 when Delamar had to convince Middlesex University (with the help of Deanne Turner, make-up artist to the Queen) of the benefits of having working make-up artists as tutors.
If the write-off of student loans continues to increase the treasury is risking getting ‘zero financial reward’ despite the government tripling the fees in their attempt to save money. Forecasts have predicted that by 2042 £90 billion out of £200 billion in student loans will remain unpaid. Due to this huge deficit, universities now fear that further cuts will be made to their budgets in order to fill the gaps in the ‘Department for Business, Innovation and Skills (BIS) budget.
Due to the change in validating partner, we were not able to offer student loans for the 2014/15 courses. We are now monitoring the cost of allowing students to apply for student loan support for our courses, as these costs inevitably get passed on to students (as student repayment rates fall, the cost per student is likely to rise). A ‘Professional Career Development Loan’ is still available and can be used towards the costs of your fees.
If you would like to read the full article about tuition fees featured in the ‘Guardian’ today then follow this link