Higher education students need flexibility and support

Hidden costs and rising debts have left this year’s crop of freshers facing an unwelcome new university challenge, warns Katie Dalton, president of the National Union of Students (NUS) Wales

LAST week saw thousands of students facing potential disappointment when some universities in Wales declared themselves full, days before A-level results had been announced and before clearing had even started.

The recession and fear of unemployment has led to more A-level students than usual applying to university this September while, at the same time, people who had left education are returning to retrain as mature students, hoping to reap the long-term benefits.

Despite the fact that the number of university places in Wales is not capped as it is in England, universities still have to exercise caution. Institutions can choose to recruit beyond their funded numbers, but will receive no extra support for such students, relying only on the tuition fees paid by each individual.

If too many students are recruited on this “fees only” basis, it can lead to resources being stretched too thinly and the quality of teaching being affected. This also puts an extra burden on the government’s student support budget which provides help for students through grants and loans.

In this context, it is completely unacceptable that applicants are left in the dark about the true cost of degrees.

Last week, a survey by university information website Push revealed that the level of student debt had risen by 24% and, in some cases, reached figures of more than £20,000 a student. At the same time, an NUS/HSBC survey revealed the true cost of certain courses in higher education.

Maths and computer sciences degrees emerged as being the worst offenders in terms of hidden costs, with students spending an average of £1,430 extra to pay for books, equipment and fieldwork. Many students preparing to go to university this summer may be in for a real shock when they start to learn the true cost of higher education.

NUS Wales believes universities need to publish these hidden costs for applicants to see. There also needs to be better information, advice and guidance about student finance, including money management workshops and support in time of hardship. Information needs to be visible on university websites and prospectuses, with advice and support readily available on campus, so students do not have to get into commercial debt or jeopardise their studies by taking on too much part-time work.

Most institutions recommend that full-time students should work no more than 16 hours a week, but figures from the Institute for Employment Studies suggest that 52% of full-time students in Wales do paid work during their academic year. About 41% of these said it had a harmful effect on their studies, compared to 29% the previous year.

In the same period, 91% of full-time students and 57% of part-time students in Wales turned to commercial lenders to subsidise their studies.

Education in Wales faces two challenges. Institutions are limited in their development by a growing funding gap compared to England, which threatens the ability of Welsh institutions to compete on the global market. At the same time, they must continue to widen participation, which inevitably leads to increasing numbers of students from more diverse backgrounds.

As the cost of education and number of students continue to rise, it is essential to develop a more flexible attitude towards delivery, better support throughout courses, and assistance to students when entering the job market at the other end.

Not to do so would have a long-lasting impact not only on the economy of Wales but also on its society and culture.

In the spring, NUS Wales welcomed Education Minister Jane Hutt’s commitment to a progressive funding model, supportive of the values of social justice, transparency and public accountability.

We are working with the sector to develop a National Bursary and Scholarship Framework which will provide full-time university students in Wales with a fairer support system, easily understood and accessible nationally.

At a time when new graduates are having difficulty entering the job market, we also encouraged the Assembly Government to develop a graduate recruitment scheme – which is being finalised.

More needs to be done, however, for students from less traditional backgrounds, such as mature students, students with children, and those studying part-time. Figures from a variety of sources suggest these groups are more likely to suffer debts and ultimately drop out of their course due to lack of support.

Mature students returning to education are more likely to need support to adapt to the needs of their courses; students with children need timetables to be set early in the year to help them arrange childcare provision; and, unlike full-time students, part-time students still have to pay fees up-front and need further support to cope with the resulting financial pressures.

NUS Wales believes in a simpler, more accessible and transparent system for the distribution of student support, which can be delivered through a national bursary and scholarship framework.

We also champion a more open attitude towards the real cost of education, so potential students have access to the right amount of information and support that will help them make informed decisions about their place of study.

In a time of recession and an ever diversifying student population, higher education must be flexible and accessible to all who have the potential to succeed.


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Back to School, but Hopefully Not Back into Credit-Card Debt

The second part of the new credit-card law is aimed at helping college kids and other younger folks stay out of debt. Banks aren't allowed to issue cards to anyone under age 21 unless the person has a co-signer or demonstrates independent means to pay bills. That part of the law won't go into effect until February. Until then, kids can get credit cards—and dig themselves into debt—pretty easily.

And college kids are quite good at this. In 2008, college seniors had an average of $4,138 in credit-card debt, and one in five seniors carried more than $7,000 in debt, per a WSJ story. That's especially bad considering the lack of job prospects once those students graduate.

Because the goal for a student should be to figure out how to use plastic responsibly and establish some credit history (because it may be difficult to rent an apartment otherwise), the WSJ offers some options other than simply letting a kid sign up for every card he wants and letting the bills fall where they may. You could make your child an authorized user, or help the kid open a checking account that comes with a debit card rather than a traditional credit card. Just make sure the debit card won't assess $30 or more in "overdraft protection" fees every time the student tries to use it and there's not enough money in the account.

A series of Consumer Reports' blog posts this week covers the world of college kids and money, including a post about credit-card debt. Among the somewhat obvious yet solid advice:

While building a good credit history is a smart move for students, the best way to do that is to shop for a credit card with no annual fee and use it to charge a recurring expense, paying off the card bill on time and in full each month.

But be wary of pre-paid cards that may be marketed to students and others with a skimpy or poor credit history because this kind of plastic is likely to only get them in more hot water.

But let's face it: College students aren't all that different than "adults." We're all equally able to spend crazily and get into debt. Everyone needs to figure out how to choose a credit card (or cards, let's face it) and use it wisely. Plenty of changes are occurring with card terms and APR rates, so it's certainly a time to reassess if the cards you have are worthwhile, and if a change is in order. Check out a NY Times story describing some of the options if you're already in debt, if you want cash back, and so on.


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