New University Fee Structure

The government’s decision to put off the cap on university tuition fees has received a lot of public attention in recent months. This year’s maximum constitutes £3200 per annum in fees. However, many universities have already warned that they are planning to increase their tuition fees to £9000 per annum starting from 2012.

With the fee structure as it is now and everyday expenses, the average student in the UK is likely to have a student loan and other debts of about £25,000 after graduation. However, in light of recent announcements about the new charging structure, this figure could double.

Even though student loans are a very cheap financial alternative for students and the graduates don’t have to repay it until their earnings reach at least £15,000 according to the existing loan rules, it usually takes them several years to repay the loan, no matter how low the interest is.

The new legislation means that the graduates will have much higher levels of student debt, but they can be consoled by not having to start repaying the loan until their income reaches £25,000. In addition, monthly loan repayments are to be reduced in order to lessen the financial burden for graduates in the short term. However, this rule will make their loan debt outstanding for longer term.

If an individual fails to repay a student loan debt in full after a period of 25 years, the rest of the debt will be liquidated by the government.

Student loans are very cheap, but they still can affect one’s credit history and ability to avail of other loans. Even if the graduate is lucky enough to get a mortgage, the obligation to repaying their student loan for the whole mortgage term might be too difficult.

The new legislation is likely to discourage many potential students from going to university.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.