Education UK: How does the weight of student loans affect students’ lives in the United Kingdom?

How does the weight of student loans affect 

students’ lives in the United Kingdom? 

(Live and Studying Costs & Fees in UK, s.d.)

Introduction 

It is said that the United Kingdom offers the best education money can buy in the English-speaking world (What are the costs of studying in the UK, s.d.). In general, their education is considered to be top notch. That’s why the United Kingdom attracts so many students from all over the world. At the same time, British education is also known to have some of the highest tuition fees compared to other countries. Recently, there’s even been an increase in tuition fees, which has sadly resulted in only a select group of students to be able to afford actually studying (UK Tuition Fees 2020 Guide, s.d.). How high are these tuition fees in reality? How do students deal with these enormous costs? Will it result in debt in their later lives? 

How did this topic grab my attention? 

Before I investigate this topic, I would like to tell you how this caught my attention. About ten years ago, I became a British student myself. I had just finished my bachelor’s degree in Belgium and decided that I wanted to learn and discover even more in my field of study. Through the Erasmus+ Programme, I was able to get my master’s degree in The University of South Wales in Newport, Wales. Among my fellow students, there were several others who flew in from abroad. We were perfectly divided into three even groups: British, international and Erasmus exchange students. 

As I was comparing my tuition fees with those of my fellow students, I discovered one major difference. The Erasmus+ Programme meant that I would follow classes in Wales, but because I was enrolled in my school in Belgium, I would only have to pay the Belgian tuition fees. Surprisingly, mine were much lower than the ones the British and international students had to pay. In this blog post, I will be looking into the actual costs of studying in the United Kingdom. As some of my old classmates are still paying off student loans and are thus living in debt, I want to investigate the impact of student debt on financial stability and general life. I looked up documents and articles online in order to combine my findings into an overview of the issue. 

How much does studying in the United Kingdom cost? 

In September 2020, the website Save the Student ran an online survey for students in the United Kingdom, called the National Student Money Survey. According to their findings, it costs about
£55 620 to go to university (Allingham, 2020). This whopping price tag is of course a combination of several smaller amounts which students have to pay for. First, you have to consider the tuition fees themselves. For most students that is about £9000 per year, which is £27 000 over a three-year course (Allingham, 2020). This is an average estimate, because some degrees cost less than others. 

Apart from studying, students also have to count in a whole bunch of other costs. Accommodation, for example, comes with rent, costing approximately £547 per month, and several bills, costing £50 per month. Add to this costs for mobile phone bills, internet, books and studying equipment. Sadly, the National Student Money Survey also noticed that food, both eating out and buying groceries, is the second biggest cost students have to deal with. About £130 per month (Allingham, 2020). These living costs rise up to an average of £9540 per year, or £28 620 over three years. 

If you combine both costs, an average student pays approximately £18 540 per year (Allingham, 2020). International students, however, can expect even higher fees, ranging between £10 000 and £26 000 annually for their degrees (The cost of studying at a university in the UK, 2020). 

What can students do to cope with these costs? 

Just imagine the weight of these numbers on one’s shoulders. Some skip meals to make ends meet and others lie awake at night worrying. Looking at the National Student Money Survey graph, most students, about 68%, can count on their parents, while 74% survive by taking up a small job to cover some of their expenses (Brown, 2020). Naturally, there are several benefits to having a job. For example: gaining work experience and finding new connections. It must be difficult though to juggle both a job and university work. So, many become part-time students, doubling the amount of time it takes them to get their degree. 

(Bolton, 2020)

Looking back at the graph, there are many ways to make that extra bit of cash to make it through the month. Some ways can be rather surprising and creative. One student sends anecdotes to magazines, a second student begs on the streets and a third student volunteers his or her body for studies. Alarmingly, some turn to extreme solutions, like drug trials, gambling and even 4% engage in sex work by using their body to make ends meet. Do not assume, however, that this always involves sleeping with strangers for money. Sharing images online seems to be the most popular way (Brown, 2020). Nevertheless, I find it extremely alarming that so many have to go to such great extents to survive. 

Can they count on any official financial support? 

Student loans, which are funded by the government, give students from any financial background the chance to get higher education. You can get loans, grants and other forms of funding to pay for the tuition fees of your course. According to the UCAS, the Universities and Colleges Admissions Service, these normally cover lectures, seminars, field trips, access to course-related facilities and equipment. Printing, textbooks, course material and personal technology are not covered, however (Undergraduate Tuition Fees and Student Loans, s.d.). These loans can vary greatly depending on where the student is from and where he or she will be studying. 

(Undergraduate Tuition Fees and Student Loans, s.d.)

The tuition fees are paid directly by the university and students won’t have to pay them back until after their course, provided they earn above a certain level. The same kind of loan is available to cover some of the accommodation and living costs, but not all. The money is given at the start of each new term, but how much everyone gets depends on basic criteria. The first one being residency. You have to be a British resident who has been living in the United Kingdom for at least three years. International students who only recently moved there are sadly out of luck. Next, your university and the course you want to take have to be officially recognised. To finish off the criteria, it has to be your first higher education course or the funding will be limited (Undergraduate Tuition Fees and Student Loans, s.d.). 

What happens after graduation? 

You find yourself graduated with your diploma in hand and you score a job. Now it’s time to repay your student loans. The UCAS notes that it’s important to know that the amount graduates have to repay is based on how much they earn, not on how much they borrow. Around 9% of the income above the repayment threshold is to be repaid, if you earn above the minimum salary. When your income changes or you stop working, your repayment threshold changes or stops altogether. Do note, just like every other loan, there’s interest (Repaying your Student Loan, s.d.). In essence, once graduated, students owe the government a sum of money. The situation of these student loans has been a big topic in the United Kingdom and there’s an ever-growing student debt crisis. 

(Bolton, 2020)

Graduates have to deal with this huge stress for a long time after they’ve finished their course. All of this has a huge impact on students’ mental health, happiness, quality of life and productivity. Nearly half admit that they are stressed about their student debt while over a fifth say they worry about it often (Wilson, 2019). The issue has also caused problems for the economy of the United Kingdom, as many employers have noticed. Their workers lose a big part of their income every month and the industry has to cope with uncertainties over the unstable economy. 

Conclusion 

Many people believe that the correct order to start your adult life is to study for a degree first and look for a job second. They don’t know that there are other ways. Apprenticeships and vocational courses, for example, can offer people the opportunity to learn a job while at the same time earn money. Government and businesses should create even more alternative ways and promote these, so young adults can have a wide range of choices. Some may prefer university, but it shouldn’t be the only way (Wilson, 2019). 

As this crisis keeps growing, students and graduates alike will have to carry even bigger worries and debt. All this may become even more troubling because of the Brexit, which is something worth looking into before an entire new generation of students starts higher education. It’s surprising to see how high the tuition and accommodation fees actually are and what alarming solutions students find in order to survive. The start of a young adult’s life is scary, even more so with their mental health and financial status in danger. Change is necessary to allow these people to jump into their next big adventure without having to cope with these worries. 

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Sources

Allingham, T. (2020, September 14). How much does university cost? Opgehaald van Save the Student: https://www.savethestudent.org/student-finance/university-study-cost.html

Bolton, P. (2020, October 5). Student loan statistics. Opgehaald van UK Parliament: https://commonslibrary.parliament.uk/research-briefings/sn01079/

Brown, L. (2020, September 9). Student Money Survey 2020 – Results. Opgehaald van Save the Student: https://www.savethestudent.org/money/student-money-survey-2020.html#emergency

Bushi, R. (2020, September 1). The Big Fat Guide to Student Finance 2020. Opgehaald van Save The Student: https://www.savethestudent.org/student-finance/the-big-fat-guide-to-student-finance-2012.html

Live and Studying Costs & Fees in UK. (s.d.). Opgehaald van Uk Study.com: https://www.ukstudy.com/costs-in-uk/

Playdon, J. (2018, July 4). How Much Does it Cost to Study in the UK? Opgehaald van Top Universities: https://www.topuniversities.com/student-info/student-finance/how-much-does-it-cost-study-uk

Repaying your Student Loan. (s.d.). Opgehaald van UCAS: https://www.ucas.com/student-finance-england/repaying-your-student-loan

The cost of studying at a university in the UK. (2020, May 4). Opgehaald van Time Higher Education (THE): https://www.timeshighereducation.com/student/advice/cost-studying-university-uk#

UK Tuition Fees 2020 Guide. (s.d.). Opgehaald van Study in UK: https://www.studying-in-uk.org/uk-tuition-fees/

Undergraduate Tuition Fees and Student Loans. (s.d.). Opgehaald van UCAS: https://www.ucas.com/finance/undergraduate-tuition-fees-and-student-loans

What are the costs of studying in the UK. (s.d.). Opgehaald van Across The Pond USA: https://www.studyacrossthepond.com/study-uk-costs#:~:text=Tuition%20fees%20for%20UK%20undergraduate,live%20inside%20or%20outside%20London

Wilson, R. (2019, November 27). The effect of student debt on the UK workforce. Opgehaald van TALiNT International: https://www.recruitment-international.co.uk/blog/2019/11/the-effect-of-student-debt-on-the-uk-workforce