Who really needs a University grant?


It goes without saying that a University grant will significantly help reduce the increasing financial burden further education places on families, and provide an opportunity that would otherwise simply not exist for many. My own parents never received a grant so I’ve witnessed first hand the sacrifices made to give my sister and I the best possible start in life, but therein lies the real question. Does University give you the same headstart it used to? If it doesn’t, is it worth it and who really needs a University grant?

It’s well documented that going to University increases your earnings in the long term, but statistics can be misleading, let's look at them with a more cynical eye:
  • Median salary for young graduates: £24,000 
  • Median salary for young non-graduates: £18,000 
Source: BIS (2015)

A difference of £6000, in black and white, no more discussion, University is an advantage. Let’s pause, and have a quick think about that though; what it is that students went to University to do? A good proportion may have completed, in one of their many forms, law, medicine, engineering, architecture, finance and teaching degrees. While the latter may currently be disputing their worth to the world, in financial terms, the majority mentioned have significant salaries attached. So wouldn’t you expect higher than a £6000 difference?

The counter argument is usually “Junior doctors, lawyers and many others start with low wages and end with significantly higher ones”. I agree, so let's look at the difference in salaries for all ages from the same survey:
  • Median salary for young graduates: £31,500 for all ages 
  • Median salary for young non-graduates: £22,000 for all ages 
Given that there is a significant skew in the higher end of the graduate salaries I would expect this value to me much greater than £9,500 over time. Furthermore, if you look at this graduate average over the last decade it has barely even moved, only £500 in the last six years. Degrees are not by default, inflation or recession beating, quite the opposite. A reason for this is possibly that there is an increasing number of graduates are working in non-graduate jobs. If this is the case, what was the point in exposing yourself to this much student debt?
37% of those who went to university regret it, given the amount of debt they have accrued. 49% said they could have got to where they are in life without the benefit of a degree. - Source: Aviva (2016)
Many students question why the fees are now so high given that many only experience around 8 hours of formal lectures. Many of these lectures across the country are given to large numbers of students in a large lecture theatre via a dry Powerpoint. It leads to the criticism I often hear from industry, “too many graduates don’t have basic presentation, language or interpersonal skills for a business setting”. So what are the alternatives?

Many students are now taking BTEC courses, A-Level equivalent vocational courses that focus more of practical application than theoretical understanding, and they are on the rise. Last year a quarter of successful university applicants had at least one BTEC qualification. Employers are following in Universities’ acceptance of their value, enjoying the improved soft skills BTEC assessments embrace. Apprenticeships are also increasing, employers are scaling up their apprenticeship programmes, with hiring expected to increase by 59% in 2017 (Association of Graduate Recruiters - 2017). There has been a shift in the practical, over the theoretical, I see it in Jersey. I hear it from local employers. It’s why we have “Skills Jersey”.

Many students are also seeing the benefit of working their way up from the inside. Accumulating qualifications through work while their friends are at University. I still have friends approaching 40, still working their way through the myriad of financial exams, many young people are coming to the conclusion they might as well get a 3 year headstart on their peers and go straight to work at 18 with no further education debts. One of my recent former students has just gone to London to become a marketing executive, he’s only 21. Living with a good wage, no university debt, gaining a “real world” portfolio when his friends are returning home, many with a significant debt.

Over the last five years, tuition fees have tripled, and in some cases exceed the £9000 a year mark. The average UK student is graduating with up to £44,000 of debt (with maintenance loans), nearly double that of the 2012 £25,000 figure. Using an online loan repayment calculator (http://bit.ly/UniRepayment) this could take an outrageous 24 years to pay back. When some arguments for local students to go to University is the “experience”, it’s worth considering you could travel the world during those 3 university years with that £44,000 and probably “experience” a great deal more.
“The financial hangover from university has led many in this age group to question whether in hindsight they made the right decision and how much value it has brought to their current position.” - Louise Colley - Aviva
Full disclosure, I’ve been deliberately pessimistic to make a point. I think University still gives graduates an advantage, it is still required for many professions but it isn’t the instant advantage previously enjoyed. The benefits are being challenged by different pathways, such as BTEC’s and apprenticeships which don’t have anywhere near the same debt attributed to them. A grant that takes away the vast majority of a graduate's debt, gives the degree back its advantage. It is still a very serious considered decision for everyone, especially as us “overseas” students that are charged more in university fees.

A States grant WILL increase the options for many, opportunity should not be a socio-economic advantage. I see too many “non-academics” become hugely more successful than some “straight A” students. We tell students everyday to push the boundaries, aim high. Greater local talent helps the economy, reduces our need to import skills at a higher cost. If students can prove, through GCSE’s & A-Level/BTEC’s, that they have a chance, then no one should be denied the opportunity to become a lawyer, doctor, architect or dare I say, teacher, in the same breath.

I hope the grant is a success but University isn’t the only answer.
Who really needs a University grant? Who really needs a University grant? Reviewed by Rory Steel on 4:20 AM Rating: 5

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