The former BP Chief Lord Browne published his review on higher education funding yesterday (Tuesday 12th October) leaving many students, and their parents, questioning their future in higher education as a level of graduate debt was forecast to reach over £1 billion.
According to the BBC, the recommendations have included the removal on the cap for tuition fees, which currently stands at £3290 per year with speculation that course fees could rise to as much as £7000 per year.
This would mean a typical three-year course would cost £21,000 in tuition fees alone, not withstanding living costs. In reality, the cost of putting yourself, or one of your children through university is likely to cost somewhere in the region of £30k.
Another expected recommendation is that graduates earning higher salaries will pay more interest on their loans. The BBC website states that:
‘The government is considering asking all but the poorest graduates in England to pay a "market" rate of interest on their student loans.
Currently all graduates pay a low interest rate, linked to the base rate, on their tuition fee and maintenance loans.
The earnings level at which they start repaying loans may also be raised’.
Whether the recommendations are adopted by the coalition government or not, the way is being paved for the vast majority of students to pay more in fees and interest in the future.
The price tag of a degree is spiralling which means that at £30,000 a go, graduates need to grasp the opportunities they have when they finish university. At Grad Central we can help you to make the most of the degree you’ve worked so hard (and paid the price) for.