DON'T 'DISCOUNT' THE IDEA

The £3,000 maximum tuition fee was money I never saw as the Student Loans Company thoughtfully sent it direct to the university and without even stepping foot on campus I became in debt for the first time in my life. Three years later, another £12,000 in debt, with a degree and a new appreciation for lie-ins, I hear Conservative proposals to levy funds from graduates in order to increase university places for next year’s intake. Contrary to what you might think however, I am not alarmed at this proposal and neither should you be.

The shadow universities secretary David Willetts commented on 4 October 2009 that many students with excellent grades had trouble finding a university place this year and represents government failure. This observation highlights how the application process, albeit the middle of economic recession, failed to fund all university applications and needs rectifying. As the party supports a full review of university finance it hints to the idea made by some thinkers that a tax based on earnings after graduation would be fairer than the present pay up front method, however whether Mr Willets supports this radical change is unclear.

The Tories, should they get into power, are proposing something less drastic for now, a short-term solution costing an estimated £300m. They require graduates to repay at least £500 (if not more) of their loan within the first three years after graduation and will grant them a 10 per cent discount in return. This will fund the 10,000 extra places needed to fulfil the young student’s ambitions of going to university next year. Knowing that in six months’ time, an estimated 40,000 of this year’s graduates, of which I am one, will still struggle to find work, and with extensive debt stalking me, the prospect of cutting this sum by 10 per cent is extremely appealing.

I believe many other graduates will agree with me that a £500 sum for 10 per cent discount is both achievable and beneficial. Firstly, we will have to pay off our debt eventually and this way it should benefit the thousands of secondary school leavers who will get into a university as they deserve too. Secondly while not every graduate can find £500 that easily right after graduation, those looking for graduate positions could raise money perhaps through part-time work or even through a full time position in time, short-term plans for travelling or the like might have to be put on hold but looking at the longer-term, such sacrifices might bring greater economic freedom for students moving into the world of work with a reduced debt. 

Natalie Samuel, a Criminology graduate from the University of Manchester supports this view saying: ‘For a one-off payment which students may be able to earn during the summer of their graduation, students will see massive benefits in the longer-term with a sizeable easing of their financial burden.’ 10 per cent off an £18,000 debt for example is a saving of £1,800 benefiting students as they move into the workplace with all the financial burdens awaiting them there, as well as increasing the number of people going to university which will stimulate our forlorn economy.  

By Lucy Kay