Student finance

The greatest domestic rebellion of Tony Blair’s leadership came over his university top-up fee plan. Labour MPs thought it would throttle the hopes of poor youngsters, and they came close to destroying their boss – in the end, however, he was saved by “a nod and a wink”. The rebels’ leader, Nick Brown, used the phrase to relay a signal from his close friend and namesake, the then chancellor, that he would keep a lid on the fees. Five years on, one Brown is prime minister, the other one is his chief whip and top-up fees are up for review. This time, the nods and winks are coming from Peter Mandelson – and his words this week about facing up to the costs of education are being read as a sure sign that a steep rise in fees is on the way.

In the brief sunny morning of Gordon Brown’s premiership, grants were extended. But today the higher education debate is being played out as public funds dry up. As the savage expenditure totals for the next few years sink in, promises to protect soldiers and doctors make it virtually certain that all other sectors will face significant pain. With universities, the choice will be between cutting back on the number of students and asking them to pay more. The easier option would be to halt or reverse the growth that has gone on for decades. Ministers have already eased up on the pace of their drive to get half of all youngsters to college, while the opposition urges simply ditching what is, indisputably, a somewhat arbitrary target.

Reading about degrees in golf course management and spa therapy might make it tempting to sympathise with Kingsley Amis, who damned the “delusion that there are thousands of young people about who are capable of benefiting from university training, but have somehow failed to find their way there” and warned that “more will mean worse”. Amis, however, was writing in 1960, when barely one young person in 20 had the chance to get a degree. Every expansion since the redbricks were built has been branded an expansion too far by an elite convinced that only they are fit to benefit from university. If they had had their way, many of today’s lawyers and accountants would instead be consigned to dead-end jobs. Scaling back universities would do economic harm – particularly at a time when jobs for would-be students are in short supply. There are some useless courses, but most teach something worthwhile. Perhaps golf courses and treatment spas can benefit from being managed by people specifically schooled in the job. After all, the countries that educate more of their people do in the end seem to prosper.

But if the alternative to scaling universities back is asking students to pay more, that is hardly attractive either. Even though fees have not had the adverse impact on enrolment that some feared, some parents cripple themselves trying to spare their offspring from graduating in debt; even graver is the effect on working-class youngsters so scared of that prospect that they shun study altogether. For the great bulk of cases, though, a large investment eventually brings a comparably large return. A graduate tax – which shelters individuals from the risk that things do not work out – is the best way to marry the two. But it would not bring in the ready money that the immediate squeeze requires, so cash may have to be raised through the loan and fee system. The least-bad way to achieve this would be to increase the interest charged on loans, which could save real money without further stoking fears by increasing the headline debt. The quid pro quo would have to be expanded access to universities for part-timers and others who are currently least likely to complete their courses.

Mr Blair needed all his Houdini-like flair to escape from student finance reform. Politicians must concentrate on making tricky sums add up – and must avoid mocking less conventional courses. After all, whoever is charged with fixing higher education after the election is going to need a good grounding in escapology.

Scholarships scholarship

Has your piggy bank stopped rattling? Is your wallet looking empty? Cheer up – there’s still money out there and what’s more, it could be yours. There are hundreds of scholarships up for grabs at the QS Top Universities Fair. Some of the world’s top universities are offering to pay up to 100% of course and tuition fees – making the study abroad option much more affordable.

Italy’s Università Bocconi is offering 250 scholarships for undergraduate students and another 200 scholarships for postgraduate students based on merit and financial need.

Australian Universities are offering more than 50 scholarships for those wishing to study for their undergraduate degree downunder and at least another 50 for those interested in postgraduate study. The scholarships vary in value ranging from AUD$5,000 to full tuition fee waivers plus stipends.

Meanwhile, students wishing to study slightly closer to home could apply for one of more than 100 scholarships that the University College Dublin is offering for those interested in either sport, Irish language or choral scholars at an undergraduate level, or computer science, engineering, theology, arts and Celtic studies, business and law, or human sciences – a total of more than €1.1million.

Other UK universities are also offering scholarships. Cardiff University has a number of undergraduate scholarships available worth £3,000 each. Meanwhile, Aston University Birmingham awarded more than £300,000 worth of scholarships in 2008/09 to students across all years of study.

A spokesperson from the University of New South Wales in Australia said the wide range of scholarships and awards that they were offering were an opportunity to support current and new students ranging from annual stipends, living allowances, tuition fee costs, travel scholarships and supplements.

Jason Newman, Top Universities Fair event manager said students should make the most of the generous amount of scholarships on offer from universities. “Each year, thousands of dollars worth of scholarships go unclaimed. Putting together a scholarship application can be time consuming but it’s all worth it in the end if you’re able to secure funding for your university studies.”

Scholarships are available in the fields of social and behavioural sciences, arts and humanities, engineering science, information technology, architecture, environmental science, biotechnology, marine science and multi media.

Student grants The government today announced that it is freezing student grants and loans and cutting financial support for trainee teachers, and increasing tuition fees.

Grants for poorer students and universal maintenance loans will be frozen for the first time since the system was introduced, while fees will increase by 2.04% to £3,290 a year. The loans for living costs will stay the same, but those given to cover fees will increase to meet the rise in charges.

Teacher training grants for postgraduates, which had been universally offered, are to be restricted to people from lower income homes. Those with household incomes above £34,000 will pay for the majority of the cost of their course through loans instead of grants, adding to the debt mountain for some new graduates.

The surprise announcement is a strong sign of increasing pressures on the public purse. It is understood the move is designed to free up cash to avoid a cut in the grant as student numbers increase.

The universities minister, David Lammy, said in a written ministerial statement to parliament: “In these difficult economic times, we are continuing to take difficult decisions in the interests of students, universities and taxpayers alike.

“We have therefore decided to maintain the current package of maintenance support for full-time students, reflecting the current low inflationary environment.”

A promise automatically to give university grants to students who previously received £30-a week study grants at school has been reversed and will now be means-tested. The changes apply to England alone and will come into force in September 2010.

The decision to raise tuition fees while freezing loans and grants will be attacked by students.

NUS president, Wes Streeting, said: “Students are already racking up thousands of pounds of debt. It appears that the inflation rate is being applied where it suits universities, but not where it will improve student support.

“In the context of the current recession, these real-terms cuts in student support will be felt in students’ pockets.”

Sally Hunt, general secretary of the University and College Union, said: “This is a kick in the teeth for the thousands of people who have already applied to university. We should be doing all we can during these difficult times to make education and learning as accessible as possible.

“For all the prime minister’s warm words and promises that education would not become a victim of the recession, we are yet to see any actions to back up his rhetoric.”

The statement to parliament came hours after the government published figures revealing that the proportion of students from the poorest backgrounds is increasing. Some 21% of 18- to 21-year-olds taking degrees last year were from the poorest four socio-economic groups, compared with 18.1% the year before.

The government was last year forced to reduce the thresholds for household income to qualify for a partial grant from £60,000 to £50,000, after too many students qualified. The surge in student numbers and those applying from the poorest homes had left a £200m black hole in the student finance system.

Today’s announcement also includes the reversal of the decision to award grants automatically to students who qualified for the Educational Maintenance Allowance at school.

Lammy said: “In these difficult economic times, it is both fair and reasonable to expect that those students who see an improvement in their financial circumstances are assessed for student support, according to their need.

“We have therefore revised our plans for a guarantee of student support, and will offer students in receipt of EMA a clear quote of the student support they will receive if their circumstances are unchanged at the time they apply for higher education.”

David Willetts, the shadow universities minister, said: “Gordon Brown tried to increase support for students in his first week as prime minister and he’s been cutting it back ever since. Students from poorest families will be the victims.

“The government needs to get on with the fees review and look at ways to offer a better deal for poorer students. We haven’t put forward an alternative structure for student finance for this year. We say get on with the independent review of student finance.”

college admission process At any point in your high school career, you are preparing for college. Regardless if it is studying for a history exam, acting in the school play, or scoring the winning goal on the soccer team, each task you work on or complete throughout grades 9-12 make a difference in terms of which colleges you’ll get into – and which one you’ll attend.

Let’s look at some steps you can take each year to solidify yourself for college admissions officers:

* Get good grades – Sure, it’s most important to work hard in math and English, but schools do consider your overall GPA. So make sure you don’t slack off in Phys. Ed and be careful not to overcook your beef stroganoff in Cooking II.

* Practice for the standardized tests – Most people say you can’t study for the SAT/ACT. I agree. But, what you can do is become familiar with what they test. I definitely recommend either taking a class or getting a book on whichever test you need to take. This way, when it’s time for the real thing, you’ll know how they’re formatted and the types of questions you’ll be up against.

* Take only the tests you need – I took the SAT IIs and ended up not needing them for the school I went to. Research your schools and don’t waste your time (and money) with extraneous testing.

* Extracurriculars are important – Do you enjoy volunteer work? Can you slam dunk? How about play the viola? Any of these skills should be practiced in your high school club scene. Join the band, basketball team, and Habitat for Humanity. Stick with them and attain leadership roles. Just don’t let your grades suffer!

* Utilize AP classes – The sole purpose of these classes is to prepare you for its respective AP exam. If you score a 4 or 5 (and sometimes a 3) you’ll receive college credit for the class. Get enough credits, and graduate a semester early. Think about how much tuition and housing costs you’d save!

* Research your financial aid options – Most likely, Mom and Dad won’t have you entirely covered when it comes to paying for college. Therefore, make sure you know the 411 on potential student loans. Complete your FAFSA on January 1 of your senior year. Apply for any college scholarships you can find. File for as much in federal aid as you can. Still need more? That’s where private student loans come in.