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University Study? The Choices

You are undoubtedly familiar with headline stories in the press and on TV about fees, student debt and even student poverty. Yet how much will it cost you to go to university, and will it all be worth the work and the cost?

university study According to the Government the average amount students owe (their student debt) when they graduate is around £7,000. Just to frighten you, some of the quality press estimate current new graduate debt as being larger, some as high as £ 10,000 to £12,000. Are you still reading? Well keep calm, because those of you intending to enrol next September (2003) may well face a graduation debt as high as £ 15,000. A Government Minister has even been quoted during the summer holidays as saying that for some, a graduation debt of around £20,000 should not be considered unreasonable.

Before you start doubting whether going to university is still a priority for your future, it worth realising what you will get from becoming a graduate. Whilst you may be sceptical about the latest survey showing just how much more graduates earn, it would be prudent to take into account the findings of all such similar and numerous surveys going back a number of years. In general graduates earn far more than their contemporaries who passed A' levels (not just GCSEs) but who didn't go to university and get a degree. How much more? Most surveys shows a graduate earnings advantage of over 20%.

If you are a female graduate then your earnings will be almost 40% higher than those female friends of yours who enter the labour market after passing A' levels alone. True this is partly because in an unequal world, women generally get paid less than men. However this also means that female to male pay is closer to equality if you are a graduate.

The higher earning potential for graduates also appears to be a life long phenomenon. The Institute of Fiscal Studies analysis in the late 1990s showed this to be the case for 33 year olds (see www.ifs.org. and go to publications), and Clive Belling's survey of the over forties (University of Birmingham) showed a similar picture of continued higher graduate earnings. Doubtless this may be partially due to graduates getting earlier and more frequent promotions, but that too is a graduate benefit worth having.

Similarly, graduate employment rates are higher (or unemployment lower) than the general population, with graduates getting jobs quicker and more easily. For women, then there is an even greater advantage (over males), with female graduate unemployment being even lower. Only 2% of those women graduating in 2001 were still unemployed by January 2002 (source: Higher Education Statistics Agency). The overall average for graduates is 5%.

So just as regards employment and earnings, the 'price' that student or graduation debt represents appears to be well worth it. If you then also consider the ability for you to choose and study a subject you have a real interest in or passion for, then going to university looks a very good option. Even so, you would be well advised to have a clear understanding as to how your student debt will be paid for and managed.

Most of you will borrow the majority of what you need to live and pay fees with from the Student Loans Company. However, with increasing costs (and probably rising tuition fees) the Government organised student loans scheme may not cover all of your money needs. Those living away from home and studying in London (the maximum loan available) don't get much more than four and a half thousand. Hardship and other grants don't take this much higher.

The good news is that the Government is indicating that those from more modest backgrounds may get grants to help them pursue a university course. Similarly, those doing a Nursing degree or diploma already have access to bursaries. Yet all of these are means tested and may still not fully cover your needs.

Other methods of reducing costs or increasing income include living at home and studying at your local university. This is fine if you still want to live at home with Mum and Dad and your 'local' offers a course you really want to do. Having a passion is really required if you are going to get through the required academic work and rigours.

Taking part-time and evening work can often be a false economy leading to poor academic performance and dropping out. Some graduates at the recent graduation ceremony of a well known northern university were estimated to have been working part?time for an average of over thirty hours a week! You have to ask yourself whether such additional pressure is contributing to their studies, let alone their social development (that is also meant to be an important part of any university experience')?

Many students and their parents are now discussing how to afford university as a family. The old idea of your parents helping you later in life when you are saving for a deposit for your first flat is rapidly being replaced with help for a degree. Hopefully as a successful graduate you will be able to afford your own first home deposit with your higher earnings. Certainly borrowing any extra funds you may need (in addition to SLC loans and grants) from your parents is going to be cheaper, more reliable and easier than purely relying on your bank manager.

Having discussed some of the advantages of a university degree as well as facing the costs or price, the only thing likely to hold you back is the fear of failure. It is a fact that some students decide half way through a course that it's not for them, or that they can not cope with the work, or simply 'drop out' or fail. What happens if you end up owing some or all of the debt without the resultant degree?

Even the fear of failure should be something you can cover. Ignore those who advise you not even to think about it, as there are products now available that allow you to not just insure against having your stereo stolen whilst at uni, but also against failing your course and being left with the debt (see Uni Shield as an example, at www.saxoninsurance.com).

So there? you are, going to university and successfully gaining a degree will see you owing a fairly hefty debt but with the ability to pay it off and earn higher pay for life. If you are female then a degree is also a route to higher pay and less pay discrimination, as well as greater employment opportunities. If you are frightened about failing, you can insure against it. On top of this the additional benefits of qualifying for and working within a field or profession that actually interests you, is something that will affect the quality of the whole of your working life. Then there are the friends, the parties, the challenges, and the thinking and learning you will encounter.

It is now almost impossible for you not to find a degree course that you can feel passionate about. The range of choices now available to applicants is huge. Be picky, talk to course tutors about their courses not just about your prospects of an offer, and get going. Discuss things with both those teachers you trust (as well as the ones you like) and your parents (as well as your other friends). Finally, enjoy yourself. University and degree study is not a holiday nor always easy, but it is an opportunity and enhancing experience you will remember for the rest of your life. It will also be fun.

CourseAdvice

University Study? The Choices

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