Critical Evaluation - Essay Example

The government of UK had felt that graduates do benefit from having gained degree, through wider career and earning prospects and hence they ought tocontribute something to the nation. Thus it desired to introduce a ‘top up’ fee. A research have been carried out to assess the implications of national changes in tuition fees and funding for the year 2006, with a view to critically evaluate the new fees structure in the light of the impact it has had on various stakeholders like students, parents, the university and the government. The analysis of various data and its critical evaluation revealed that while there are many bright aspects in the change it also entails several problems for the new entrants in higher education courses. The student community has recognized the issues involved and the have started demonstrating their agitation primarily because the new approach will cause the students to be pulled into the trap of debt. The new top fees structure seeks to apply a uniform pattern in all educational institutions and imposing a limit of £ 3000 per year from the academic session 2006. It aims to provide learning opportunity to all, including the economically weaker section of the society, by financing the tuition fee through long term loans. Though the fees structure is linked with inflation, it is expected that the index will continue to remain stable till 2009. The student is expected to repay the loan after receiving employment and earning an income of above £15000. Earlier, the normal tuition fee was only £1200 per year which was thought to be just enough to cover the actual cost of providing the courses. Thus the education institutions had to face financial constraints which would be detrimental to the quality of education they could provide. Under the new system tuition fee loans are available to students who are residents of England or European Union Nations. There is no age bar for the applicants and the funds are paid directly to the university. Students below the age of 60 are also eligible for loans towards living costs, out of which 75% is available without means test and 25% depends on means test. The maximum amount of loan is £ 6170 for those who live away from home in London and £ 3415 for those who live in parental home in London. The loan is paid in three instalments during September, January and April. Repayment of loan begins in April after graduation when the beneficiary’s gross earnings reach a minimum of £15000. Interest, at approximate rate of inflation, starts accruing from the date loan is taken out and repayment is fixed at 9% of earnings over £ 15000. Payments are linked through tax system and any balance that remains unpaid after 25 years is written off. In addition, students are eligible for grants towards living cost, bursaries and some discretionary funding also. The new system of tuition fee and the corresponding financial aids have several implications on various stakeholders like students, parents, government and the university as stated under:- Parents: Though the hike may seem to affect students from poorer families, the situation is the contrary as their wards will be eligible for full or partial grant. Very low income group enjoys a wide range of grants bursaries and loans which will encourage them for higher education. So far middle income families are concerned, though their children may not be eligible for grants or bursaries they don’t have to pay any fees up front, as their children can take full student maintenance loan with repayment option depending on income when they receive employment. Similarly the higher income families can get no grant or bursaries and they will be eligible for only 75% of loan. The additional cost of fee need not be a concern for these families as they are in a position to afford it. Despite the benefits stated above, the change also has some negative impact on the families. Some low income families, that receive only partial fulfilment of grant requirements, will have to arrange the funds from other sources. Form the perspectives of very low income families, middle income families etc their children or dependents either get the fee as grant or as loan which the student will repay after receiving employment. Thus the parents don’t have to share any financial onus for the education of their children. However a higher income family will have to bear the entire cost of education of their dependents. Students: Some students from lower income families who receive only partial grant will have to depend on loans. For the middle income group students the decision of taking loans is a complicated one because of an apprehension of falling into the debt trap. Though there is a belief that the interest paid by students will be neutralised by the rate of inflation this may not prove realistic especially in the present context when the inflation rate is expected to be stable till 2009. A lot will also depend on employability of the student and whether one stands a chance of receiving a reasonable return on the investment. Institutions The institutions stand to benefit in terms of the additional income which they can channelize into augmenting their infrastructure. This will enable the institution to upgrade their facilities and quality of education they provided. On a negative note, the market will become more competitive and the institutions will diversify their courses and promote new “brands”. Additionally the student community will become more demanding and will insist on top much quality. Government: The government aims at extracting some kind of contribution from the students for the educational facilities available in the country. Though the government is giving grants etc to the students, the state receives repayment through the tax etc when the students start working. By increasing the fees it also aims at improving the standard of education, which will promote the brand name of institutions in UK. A large number of students from outside UK and EU nations seek educational opportunities in UK. Thus, overall, the government gains by increasing the educational avenues by providing more resources to the institutions. Read More