What price a degree?

7:04am Sunday 17th August 2008

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IT USED to be a rite of passage for thousands of students at the beginning of every term - queuing up to collect the grants that would help them through the following weeks.

But with the abolition of the far more generous grants system that many parents of today's students benefited from, and the introduction of tuition fees, the price of going to university has never been so high.

The recently published NatWest Student Money Survey estimates the total cost of three years at university to be £34,740.

For students, it's no longer a case of getting their grub on a grant but lunching on a loan - and getting more and more into debt.

The bank of mum and dad can end up taking a very big hit too.

Students who started university in the UK last year can expect to owe more than £17,500 by the time they leave university, according to the annual Push debt survey of 2,000 students.

With such a monster financial hangover it's no wonder that today's 20 to 30-year-olds have been dubbed the iPod generation - insecure, pressurised, overtaxed and debt ridden.

Now across Hampshire far more youngsters than ever before are easing the cost on themselves - and their parents - by studying locally so they can continue to live at home.

Totton College principal Mark Bramwell has seen the numbers of students going on to local universities double during the past five years.

"About 65 per cent of students going on to university will stay within the region because of financial issues,"

he said.

"They might also want to continue with existing part-time jobs or study niche areas catered for by local universities."

Southampton's two universities and Winchester University all say they have a high intake of students from across the region.

Nearly a third of Southampton Solent university students are classed as local.

Its student advice manager Alison Golden organises events for freshers living at home to ensure they get the full student experience.

"Unlike those who are living in a halls of residence it can be hard to immediately feel part of a student community if you are living at home,"

she said.

"We have a strong students' union and student support network officers to help them get involved.

"There are plenty of social activities and events. They can definitely have the full student experience."

Nowadays it's simply not possible for the average student to leave university without getting into debt.

Emma O'Donoghue, Southampton Solent University's education partnership urged the use of special student low interest loans that offer the chance of affordable repayments, unlike more expensive commercial loans.

"My advice would be to get your forms in as quickly as possible and make sure that if students are being income assessed they have photocopied evidence to speed things up, such as their parents earnings.

"You should also speak to the university that you are applying to, as each may have its own bursaries and grants. For example, at Solent we give students from local colleges a £250 cheque."

Miss O'Donoghue said that students applying to start university in 2009 will be the first to fill in an online questionnaire scheduled to go live in May from the Student Loans Company to assess their entitlement to financial help.

The company will also take over the role of local authorities by assessing meanstested help for new students starting at university in 2009.

This assessment takes account of household income such as parents' earnings for the previous year and any income from savings and benefits.

For the year 2008/09 students from households with an income under £18,360 will get a full, non-repayable maintenance grant, of £2,835.

Where the household income is between £18,360 and £39,305 students are entitled to a non-repayable maintenance grant on a sliding scale of between £2,834 and £50.

In households with an income of between £39,305 and £60,006, students may be able to claim up to £2,834 for an "appropriate"

reason - for example if a student is disabled.

Previously students didn't have to pay a penny for the joy of lectures, seminars and tutorials.

That all changed in the late nineties leading to today's undergraduates having to pay £3,145 for the next academic year (2008/09).

Currently the amount universities can charge is capped by the Government but, ominously, that could change when a review of the fee arrangements is carried out next year.

According to Universities UK, representing all universities, the earliest any changes could be introduced would be for the academic year 2010/11.

There is widespread speculation that universities will want to set their own tuition fees in the future - sparking fears of even higher costs.

While these fees can be paid off at any time, help is at hand for students and parents who cannot afford to pay these off immediately.

Students can take out a low interest Tuition Fee Loan from the Students Loan Company to cover the cost. The money is paid direct to the university and a student only has to start paying back instalments once they are earning more than £15,000.

In addition, students are currently entitled to a maximum £4,625 student maintenance loan, paid out in three instalments during the academic year.

Again this is paid back once a student is earning over £15,000 and the current interest rate, which is the same for the tuition fee loan, is 3.8 per cent.

Currently a graduate earning £25,000 would make a monthly repayment of £75.

With all these figures it's easy to think is it worth it.

The Government has said graduates earn over a lifetime £400,000 more than non-graduates.

However, a different report from Universities UK put that figure at £160,000 although different subjects are likely to lead to greater or lesser earnings. For example the returns are greater for dentistry graduates compared to arts graduates.

Research by the Department for Education and Skills, keen to see even more university students, found that graduates are more likely to vote, volunteer and be active citizens.

They are also less likely to smoke, more likely to exercise and generally more healthy.

That's one thing you can't put a price on.