Welsh students study on the cheap

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February 5, 2015 by THE WELSH HORIZON

A report comparing the different funding systems in the UK for University hopefuls shows that Welsh students of low-income households receive the highest bursaries for cost-of-living and incur the lowest debts after graduating.

The comparisons follow last week’s report by the Institute for Fiscal Studies, which said that increasing the cap on tuition fees to £9,000 may not save taxpayers any money and could even cost more, depending on graduate earnings, with many unable to repay their loans.

The report compares grants for various incomes across all four UK nations, plus fees and student loans.

Poorest students receive help with living costs

“For the poorest third or so of full-time students, the Welsh system is particularly good, wherever those students go to study in the UK,” says Lucy Hunter Blackburn, former head of higher education at the Scottish executive and author of the report for the Economic and Social Research Council’s Future of the UK and Scotland programme. “They receive the greatest help with the cost of living away from home.”

Welsh students from households with income that falls below the £18,000 threshold can expect to reive a cost-of-living grant of up to £5,161 that does not have to be repaid. This is nearly as much as three times the amount that Scottish students can expect to receive (£1,750). It is also significantly more than students receive in England (£3,387) and Northern Ireland (£3,475).

Welsh students that qualify for loans get £11,055

The bracket of earnings at which Welsh families would earn too much to qualify is also highest in the UK (£50,000), compared to Scotland which comes in the lowest (£34,000).

Welsh students that qualify for these loans end up taking out fee loans of just £11,055 for a three-year degree. Regardless of where they chose to study.

With the Welsh Assembly prepared to write-off the first £1,500 of student debt for graduates, even with interest accumulating during their course of study, Welsh students from low-income households could end up owing the least: £20,000 including interest.

Universities UK have established a panel of vice-chancellors and experts to investigate student fees and loans in England following concerns that the current system may not be providing value for money.

The panel will also consider the impact of the proposals on Wales, Northern Ireland and Scotland.

By Ross Jones

Photograph: Reuters.