University applications down 9%
I am sure that you are aware UCAS released a statement today about the drop in University applicants to Universities in the UK in comparison to this time last year.
The report issued states that the applicants have dropped by a staggering 9%. However, there are some key points to consider when reading this statistic.
Firstly, if you take out the applicants from overseas then the actual drop of students in the UK increases to 12%. This is an alarming drop in applicants in relation to this time last year.
Secondly, many have classed these stats as an unreliable indicator of the applicants as the closing date is not until January and Oxford and Cambridge who close their applications early only saw a 0.8% decrease overall.
It is important to consider that although the 0.8% drop at Oxford and Cambridge is less than the 9% reported it is still a drop in applicants that had been increasing year on year.
If you were wondering the numbers involved then 7,000 is the estimated amount of applicants that have shied away this year with the majority being women and mature students.
Without doubt, this drop in applicants has a direct correlation to the increase in tuition fees to £9,000 in 2012. Students are now worried about going to University as the cost no longer appears to be worth it. The thought of leaving with such a huge debt means many prospective students studying for their A-Levels will look elsewhere.
You can see which universities will increase their tuition fees in 2012 here.
Save The Student has been at the forefront of the fees debate and has had key input from huge figures such as Ed Miliband, most notably in the online petition which was the largest student petition at the time. However, as the number one student money and student finance site it is our responsibility to give both sides of the story.
Through our own research and the student loans repayment calculator that we created earlier this year, we have found that most student will have to repay less under the new system. What's more, it's what we could call “good debt.” It does no affect your credit rating and the rate of interest follows inflation. In other words, it's the best value loan you will ever take out.
Here are few more points to relieve some of the myths about student loans in 2012:
- You pay back 9% of all you earn over £21,000 (it is £16,365 in 2013 under the current system and rising with inflation each year). This leaves you better off if you earn under an average of around £45,000
- If you earn under £21,000 you will never have to pay it back. A lot of graduates are now looking to become self employed or run their own business. They may not be aware that you can claim expenses and never have to pay back your student loan.
- After 30 years your debt will be cut off. You will no longer have to pay back anything you owe after 30 years and most students under the new system will appear to get this as an outcome.
That's it for our quick update on the student loans for 2012 saga. If you had any questions or wanted to know more about student loans and student applications from A-Level then please leave a comment.