Q. How have the costs to go to university changed?
Q. How has the Tuition Fees cost changed? |
Sources
It was quite difficult to get the historical information about Tuition Fees and Loans as there doesn't seem to be any official track record of what has been applicable for each academic year. However, the below sources have been used to build up and cross validate the figures. Wikipedia. Timeline of tuition fees in the United Kingdom. Feb 2019 https://en.wikipedia.org/wiki/Timeline_of_tuition_fees_in_the_United_Kingdom UCAS. 2018 UCAS Undergraduate reports by sex, area background, and ethnic group. https://www.ucas.com/data-and-analysis/undergraduate-statistics-and-reports/ucas-undergraduate-end-cycle-data-resources/applicants-and-acceptances-universities-and-colleges-2018 Student Loan Company. Plan 1 - How and when you repay. http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678511&_dad=portal&_schema=PORTAL |
Typical Student Debt Estimates
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Working out the trend in student debt has many complications and is quite difficult to accurately display in a graph due to the multiple variables. However, with some basic assumptions to gauge a 'typical' student's arrangements, insights can be made around the long-term changes.
We have modelled both 3 and 4 year courses and taken the maximum 'maintenance loans' available in line with the thresholds for that given academic year. While the loan interest rates are variable each year (RPI+3%), we have assumed 6% each year. For example, the interest rate for 2018-19 = RPI (3.3%) plus 3% = 6.3% Evidently, some major step changes have driven significant increases to the average Student Debt, particularly in 2006-07 and then again in 2012-13. The non-repayable 'Maintenance Grants' are no longer offered to disadvantaged students and have effectively been replaced with more debt. |
Changes in the amount of Student Debt
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In 2006-07, Tuition Fees tripled and then tripled again in 2012-13. In 2017-18, the amount went up by £250 to £9,250 and interest is now added every month during the course period at a variable rate; 3% more than the Retail Price Index (RPI).
The 'Total Loan including interest' amount has increased by over 300%, when the above assumptions are made. So the equivalent debt at graduation for a student completing a 3 year course has gone from £14.5K in 2000/01 to £60.6K in 2018/19. Once graduated, there are higher interest rates applicable on the debt for students on 'Plan 2' who started in 2012/13 or later, compared with the earlier 'Plan 1' model. In 'Plan 1', the interest rate is equal to the Bank of England base rate plus 1%. In 'Plan 2', the interest rate applied following graduation is now variable depending on income, with higher earning graduates paying the maximum rate of RPI + 3% (currently salaries above £45K). |