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The Real Cost of Education:The Student State of The Nation
Students are
leaving higher education saddled with thousands of pounds worth of debt, so is
going to university still worthwhile?
The Government has announced that student grants and loans will be frozen next year, while tuition fees will continue to rise. This is another blow to those already worried about how they will cover the cost.
The average debt
According to research from The Children's Mutual, the average graduate leaves university with debts of around £17,500 and this figure is likely to be even higher next year following fees increases. Tuition fees for UK and European Union (EU) students undertaking their first degree are set by the Government, and for those starting university courses this September (2009), fees will be £3,225 for the year. Next year, they will rise to £3,290.
Living expenses are also steep. The National Union of Students (NUS) estimates that rents outside London typically cost £2,928 last year (2008/2009), while food adds another £1,718 onto bills. For students in the capital, these figures rise to £3,906 and £2,141 respectively.
In total, once tuition fees, books, travel leisure, insurance and other expenses are factored in, the NUS says that the annual cost of being a student is £15,769 in London, or £13,626 if you are studying outside London.
Given these steep costs, for some, vocational training, trade skills and apprenticeships might prove a better option than university, particularly given current high rates of unemployment. Some employers may look more favourably on candidates with experience of the workplace, so it is worth doing a bit of research into whichever career you are hoping to pursue to find out what sort of qualifications they are looking for.
Take advantage of available aid
Whichever option you take, managing your money effectively while you are young is the key to your financial future. If you are going to university, find out what help is available to you, such as Tuition Fees Loans and the Student Loan for Maintenance, both of which will have to be repaid at the end. If your family income is relatively low, you may be eligible for a Maintenance Grant, which doesn't need to be repaid
Many universities and colleges also offer bursaries and scholarships which are not repayable, but like the Maintenance Grant, these will depend on your family income. The website www.bursarymap.direct.gov.uk has bursary information for all the universities and colleges across the UK.
Make sure you keep a careful budget while you are studying and see if you can get a part-time job to help cover some of your living costs. Living at home while you are studying will also save you money, as your family may let you stay there for free.
The more you can stay on top of money matters and avoid debt while you are in your teens or early twenties, the sooner you will be able to start paying into pensions, tax-efficient ISAs including a cash ISA and other investments once you finish your education.
All these will help ensure you build a firm financial foundation which will provide you with security for many years to come, whichever career path you choose.
