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US vs. UK Tuition Fees

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Rob Walsh

on 21 April 2014

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Transcript of US vs. UK Tuition Fees

US vs. UK Tuition Fees
Facts about UK Tuition Fees
The Way out
Tuition Fees in
the United States

Policy in the US & UK
Policy in the UK
Both sides of the political aisle have separate views on how to address the problem of rising tuition
Current Loan Program Shortcomings
First predicted only 28% of student loans would be taxpayer subsidized
Currently at 45%
At 48% the benefits from the previous tuition raise (£3000-£9000) would be canceled out
Current Gov't Planning
Universities Minister contemplating raising tuition cap once again.
Opposition Party Planning
Labour considering a £3000 reduction in tuition cap.
Possibly a £4000 reduction
Graduate Tax
Policy in the US
Many factors associated with rising cost of tuition
Decline in state funding
Technology costs
Higher expectations of schools
Tuition rising faster than inflation
President Obama's Plan
Ranking system for colleges
Rank based on several credentials
Wants to tie to Financial Aid by 2018
Urging colleges to be more innovative to reduce costs
Pay-As-You-Earn Program
National Civil Service Scholarship
1:17 students of families that earn about $35,000 graduate
1:2 students of families that earn about $80,000 graduate
Teaches students about community
The Upward Cycle

Tuition increases yearly in the U.S. a rate of 4.5 % at private universities and 8.3 % at public colleges
Tuition costs have risen 538% since 1985
Why this increase?
The cost of tuition depends on the states economy and the structure of their system of higher education
Ways to Pay
Grants and Scholarships
Student Loans
Four students sued the Arizona Board of Regents claiming that tuition prices were excessive and violated Arizona Constitution
Students did not win case
Kromko v Arizona Board of Regents
Tuition Increases & the Courts
Students have looked to institutions such as the courts to argue that increasing tuition has been unlawful in some situations. Unfortunately, these students have not been successful in the United States.
Jodi Stern, et al. v Board of Regents
Students sued for breach of contract because University raised fees after tuition had been paid
Court claimed there was no written agreement that caused a breach
Facts about UK Tuition Fees
-Fees were first introduced across the entire United Kingdom in September 1998 with students being required to pay up to £1,000 a year for tuition

-In 2010, House of Commons approved towards the rise of university tuition fees, from £1,000 to £3,000 a year

-On Tuesday, 14 December 2012 Parliament followed the vote by peers in the House of Lords allowing the new fees increase from £3,000 to £9,000 a year

-Students applying for courses for the first time in 2012/13 and onwards, will be charged the higher fees of £9,000 a year for tuition
Impact on students of the tuition rise in the UK and how they may pay for it
-March 23rd, 2012
Somerset student raises sheep to pay university fees

Other ways to pay for tuition
-Students don’t need to pay anything while studying, with the option of taking loans for tuition, which you’ll only pay once you’ve graduated
-Repayments will be based on what you earn and not on what you owe and will be collected through National Insurance Contributions
-All outstanding loan repayments will be written off after 30 years
This table provides an overview of what your repayments will be like:

Gross Salary After Graduation ; Amount from which 9%
will be deducted; Monthly Repayment; Yearly Repayment
£21,000.00 or less £0.00 £0.00 £0.00
£25,000.00 £4,000.00 £30.00 £360.00
£30,000.00 £9,000.00 £67.50 £810.00
£35,000.00 £14,000.00 £105.00 £1,260.00
£40,000.00 £19,000.00 £142.50 £1,710.00
£45,000.00 £24,000.00 £180.00 £2,160.0
£50,000.00 £29,000.00 £217.50 £2,610.00
£55,000.00 £34,000.00 £255.00 £3,060.00
£60,000.00 £39,000.00 £292.50 £3,510.00

Drop in University Applications:
-There has been a drop of 20,000 in new applicants in the year before fees went up
-15,000 applications missing because these students did not apply to university after fees hike, 9 August
-Plans to allow universities to charge up to £9,000 tuition fees could push public sector debt up by up to £100billion over the next 20 years

Major Court Case in the UK Regarding Tuition Increase:
-Callum Hurley, from Peterborough, and Katy Moore,
from London, claimed the decision to allow fees to rise breached human rights and equality laws.
-The 17-year-olds had argued that higher fees would discriminate against poor and ethnic minority students.
-The teenagers said they would both go to university
-The teenagers lost the case though because allowing to fees to rise does not breach human rights and equality laws
Full transcript