University Hopefuls Too Gloomy About Fees Says New Research for University of Greenwich
New research released today by University of Greenwich reveals that many A-level students and parents are misinformed about the new student support system, which could affect important decisions about whether to go to university.
According to independent research from YouGov (1), many university hopefuls are too gloomy about how much their Student Loan repayments will cost them. On average, they overestimate their repayments after graduation. On a salary of £16,000 they expect to have to repay £111.23 a week, whereas the correct figure is just £1.73 a week. Graduates earning £20,000 a year will repay £8.65 a week, and those on a salary of £30,000 will repay £25.96 a week (2).
Other myths and misunderstandings revealed by the survey include the finding that one in ten students (11%) mistakenly believes that under the new fees system, to be introduced this September, higher fees have to be paid up-front at the start of each academic year and another 10% didn’t know about the new system at all. In fact fees can be paid back through Student Loans once students graduate, start working and can afford it. Parents are even less well informed: 46% are not aware of the repayment terms of variable fees.
Many sixth formers are unclear whether, in terms of earning power, it is worth going to university. One in four does not know that people who go to university earn more than those who go straight into work. In fact, over the course of their life, it’s estimated that graduates on average earn anything between £150,000 (3) and £400,000 (4) more than those who have not gained a degree.
The research also looked at the effect of higher fees on students’ choice of university. It shows that many prospective students favour universities, such as Greenwich, which have lower fees, with one third (33%) saying that they would be more likely to go to a university which charged £2,500 a year, rather than the full £3,000 fee which will be imposed by the majority of universities from September. Tuition fees at the University of Greenwich are £2,500 for honours degrees and £1,500 for foundation degrees and HNDs.
“This research shows how important it is for universities to get the message over that Higher Education is a great investment for the future, which leads to better jobs and higher pay,” says Dr Margaret Noble, Pro Vice-Chancellor of the University of Greenwich.
“With its £2,500 fee Greenwich offers high quality education at an affordable price. Every new student will benefit from paying a fee below the maximum. “Our aim is to attract students from a wide range of backgrounds, invest in their education, improve their chances of success and help them into good jobs after graduation.”
According to the research, 81% of parents of students are worried about the financial implications of their child going to university. When asked whether they would miss their child when they fly/flew the nest, 60% said they would miss their child a lot, a quarter said ‘a little’ and 8% ‘not at all’. Almost one in five parents (18%) said that their student offspring regularly bought laundry home for them to wash. Eighteen per cent have asked parents for money for food, 12% have asked for money for a night out, 11% asked parents help in getting a deposit back from a landlord and 12% even asked their parents to help them with university coursework.
To find out more about the new fee and student grant system, or to apply for a place at the University of Greenwich call Freephone 0800 005 006, see: www.gre.ac.uk or e-mail: courseinfo@gre.ac.uk.
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Notes:
- 250 A- level students and 250 parents of A-level students were interviewed by YouGov between 9th and 14th August 2006.
- http://www.dfes.gov.uk/studentsupport/students/loa_loan_repayments.shtml
- The Return to a University Education in Great Britain, National Institute
Economic Review, (2005), Nigel C. O'Leary and Peter J.Sloane.) - DfES 2001.
For further information:
Caron Jones
Pulic Relations Unit
University of Greenwich
Tel: 020 8331 8248
Email: caron.jones@gre.ac.uk