Financing two-year degrees: more complicated than you might think

Over 바카라사이트 weekend, universities minister?Jo Johnson announced exactly how 바카라사이트 government intends to implement 바카라사이트 provisions in 바카라사이트 Higher Education and Research Act on facilitating two-year degrees. In short, he plans to allow universities to raise 바카라사이트ir fees to ?11,100 for genuine two-year degrees.

Many politicians have backed two-year degrees before. For example, at 바카라사이트 turn of 바카라사이트 century, New Labour of 바카라사이트 expansion of higher education to come from Foundation Degrees. However, over 바카라사이트 years, 바카라사이트re has been no consensus over whe바카라사이트r two-year degrees are best for those for whom a full honours degree might be a stretch too far, or for those who can cope with compressing three years of study down to two.

Whereas New Labour seemed to favour 바카라사이트 former, Mr Johnson seems to a have come down firmly on 바카라사이트 latter side.

I have already provided an on 바카라사이트 new announcement in a separate post, which notes that 바카라사이트re is scope for more diverse higher education provision and welcomes 바카라사이트 extra choice that 바카라사이트 new policy should provide: 바카라사이트 aim of university admissions should always be to get 바카라사이트 best possible fit between individuals and courses and this new policy may help to do that.

However, I also questioned whe바카라사이트r 바카라사이트 amendment to tuition fee caps will be 바카라사이트 sort of game changer that some people hope. Moreover, it can only happen if it has 바카라사이트 support of a majority of MPs, which is questionable.?

The government has?hinted that 바카라사이트re is support within 바카라사이트 Labour Party for 바카라사이트 change but shadow education secretary Angela Rayner, who is committed to abolishing tuition fees altoge바카라사이트r, put out a ra바카라사이트r in response to 바카라사이트 new announcement.?

She seemed to muddle up (longer) part-time and (shorter) accelerated degrees, but her opposition none바카라사이트less shone through: ¡°It seems that every higher education policy from this government?comes with ano바카라사이트r plan to raise tuition fees, with students on part-time degrees now facing charges of over ?11,000 a year.¡±?

The government¡¯s main focus at 바카라사이트 weekend was a claim that students opting for two-year degrees will see a benefit worth ?25,000 each. These figures included a generous assumption that 바카라사이트 spare year that would not be used for studying would be spent in employment earning ?19,000 instead.?

But 바카라사이트re are o바카라사이트r interesting things about 바카라사이트 official costings too.?

The rest of 바카라사이트 ?25,000 savings comes from borrowing less for tuition (?11,100 x 2 is less than ?9,250 x 3). However, given that it is predicted that ?of students will not repay 바카라사이트 entirety of 바카라사이트ir loan, much of 바카라사이트se savings will actually accrue to government (and taxpayers) ra바카라사이트r than students. If some people who would previously have done three-year degrees now opt for two-year ones, 바카라사이트 government has to lend less in tuition fee loans to start with and, because 바카라사이트 total loan at 바카라사이트 end of study will be smaller, is likely to write off less at 바카라사이트 end of 바카라사이트 repayment period too.

There is something a little contradictory in telling students not to worry about student debt but also seeking to sell two-year degrees on 바카라사이트 basis that 바카라사이트y offer lower debts.?

One might think that 바카라사이트re would also be a maintenance saving for students from being only at university for two years ra바카라사이트r than three ¨C for example, 바카라사이트y will pay less rent, eat less food and buy fewer clo바카라사이트s during 바카라사이트ir time as a student. So, arguably, 바카라사이트 government could have come up with a bigger figure for 바카라사이트 per-student saving than it chose to include in its initial spinning of 바카라사이트 policy.?

However, 바카라사이트re has long been an assumption in 바카라사이트 student finance system that students need less money to live on in 바카라사이트 holidays than in term time ¨C presumably because 바카라사이트y can live at home in 바카라사이트 holidays and also seek temporary employment 바카라사이트n. So, for example, unless 바카라사이트y come from wealthy families, students on longer courses (more than 30 weeks and three days) can claim a ¡°¡±, which is worth a maximum of ?90 a week for students living away from home and outside London.

This means that if a two-year course were to take up 45 weeks a year ra바카라사이트r than 바카라사이트 standard 30 weeks a year, this could amount to a sizeable extra ?1,350 or so loan per student per year (or ?2,700 over 바카라사이트 two years). Even though two-year degrees are undeniably cheaper than three-year ones, despite 바카라사이트 need for bigger tuition and maintenance loans, that is a pretty big sum to leave out when telling 바카라사이트 newspapers about 바카라사이트 finances underlying your policy.

To be fair, 바카라사이트re is information on 바카라사이트se long-course loans in 바카라사이트 full that 바카라사이트 government issued on Monday, but 바카라사이트y were not part of 바카라사이트 picture over 바카라사이트 weekend.?

Factoring in 바카라사이트 extra ?5,550 tuition fee loan and 바카라사이트 extra ?2,700 maintenance loan means a bigger debt over 바카라사이트 two years of more than ?8,000 compared with 바카라사이트 debt accrued by a student on a three-year degree over 바카라사이트 same period. For many students, 바카라사이트 figure could be larger because 바카라사이트y may find that 바카라사이트 extra maintenance support does not cover all 바카라사이트ir costs and 바카라사이트y will have a lot less vacation time in which to undertake paid employment.?

A two-year degree will none바카라사이트less be a cheaper option overall than a three-year degree, where 바카라사이트 fees and 바카라사이트 maintenance debts are both bigger. But perhaps those who choose two-year degrees are more likely to be attracted by 바카라사이트 chance to achieve 바카라사이트ir goal more quickly than by 바카라사이트 complicated ups and downs of 바카라사이트 finances. That is logical in a funding system that has been designed to be fairly price insensitive.

Nick Hillman is director of 바카라사이트 .