Students face doubling of fees and rise in loan costs

By Senga Jones, BSc CertPFS CertCII(MP)

"Students face doubling of fees and rise in loan costs"
Times Online, 9^th November

This article on Times Online caught my eye this week. 

In a move towards aligning universities with the needs of business, the former chief executive of BP is to chair an independent review of higher education and student finance. 

This has prompted a lot of debate on the Times Online discussion page. 

The review will last up to a year and even then we don't know how long any suggested changes will take to implement.  Some suggestions are that fees will rise to £7,000 per annum by 2013. 

When I studied for my business degree I had to work part time and take out a student loan, as did many of my peers, to contribute towards the costs which came with enrolling in higher education.  I don't feel I could have worked more hours than I did and also meet University deadlines for papers. I attended more than 5 years ago when fees were significantly lower than today's costs and possible future increases.  

Will this sharp increase lead people to consider doing part time courses which are one day a week and working more hours to help fund the ever increasing costs or putting off going to university all together?  This may happen if parents are unable to take on the financial burden due to not planning for the ever increasing costs. 

At Yates & Co, we keep track of suggested changes that may affect financial planning.  The student loan system is likely to evolve.  When we are working with clients who have young children, we always address the need to fund education costs.  Having a financial plan that is reviewed annually enables our clients to keep track of suggested changes like this.  It gives them time to react and we can help them adapt their financial plans to suit. 

Read the full Times Online article at: http://www.timesonline.co.uk/tol/life_and_style/education/student/article6908938.ece