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Are The Poorest Being Priced Out Of University?

This week saw maintenance grants for university students from low-income homes replaced by loans – but does this result in the poorest being priced out of university?

Students starting courses in England are no longer able to apply for a grant to help pay for their education. The system previously allowed those from families with an income of less than £25,000 per year to receive a grant of £3,387 a year.

The switch to a loan system was first announced in the July 2015 Budget of then-Chancellor, George Osborne. At the time he argued that there was a “basic unfairness in asking taxpayers to fund grants for people who are likely to earn a lot more than them.”

However, there has been widespread criticism of the move as statistics show that the perceived “unfairness” of grants may have been surpassed by an inequality of opportunity.

A Disgraceful Change?

Sorana Vieru, the vice-president of the National Union of Students has called the change “disgraceful,” saying that it may stop those from less well-off backgrounds from going on to study at university.

Speaking to BBC Breakfast this week, Vieru said,

It’s a disgraceful change that basically punishes poorer students simply for being poor, so they have to take a bigger loan than those students from privileged backgrounds,” adding, “It could put off students from underprivileged backgrounds from applying, who might not understand how the loan system works, or are very debt-averse. We also know that mature students are way more debt-averse than younger students and BME [black and minority ethnic] students perceive student debt on a par with commercial debt.”

Higher Earnings?

Of course, the theory behind the new maintenance loan and behind tuition fees in general is that a degree leads to higher earnings, so graduates should be more than able to repay the debts they built up at university. This theory is supported by the government who say that going to university boosts your chances of getting a job and leads to better earnings.

However, this assertion may be wide of the mark, as a new report by the Intergenerational Foundation lobby group, suggest that having to pay back student debts will wipe out any graduate premium for most professions.

A Backwards Step For Equality?

With the proposed increase in tuition fees adding to the financial burden it remains to be seen how the rising debts associated with university education will impact the government’s wishes to see more students from the poorest backgrounds going to uni – especially white working class boys, who have been shown to be the group least likely to go to university.

Student debt

Sir Peter Lampl, chairman of the Sutton Trust and of the Education Endowment Foundation, was particularly scathing of the levels of debt faced by graduates from English universities. He said,

The abolition of maintenance grants means it is the poorest graduates who are getting the worst deal, with debts of over £50,000 on graduation.

It is outrageous that the government has got rid of maintenance grants. It will make it harder to increase the numbers of disadvantaged students at the most selective universities and it will lumber them with massive debts,” Lampl continued, noting, “With the access gap at these universities still unacceptably wide, the government should be doing all it can to increase participation, not reduce it.”

Disadvantaged students will end up with the greatest debt

Labour leader, Jeremy Corbyn was also outspoken in his opposition to the abolition of maintenance grants, saying,

It will mean that the most disadvantaged students will end up in the most debt,” adding, “What an appalling message to send to a generation of people whose opportunities already seem so limited by a lack of jobs.”

In fact, Corbyn has promised to abolish tuition fees altogether and improve student support, saying, “Education is a social good - it benefits everyone in society, and it should be funded publicly. We will go further than simply reversing the cuts to education - we will break down barriers to study at every level, allowing everyone to access education and skills throughout their lives.”

Meanwhile, Liberal Democrat education spokesman, John Pugh, called the end of maintenance grants a “disgraceful move,” stating, “For the government to argue otherwise just shows how little they understand about the challenges faced by many students from lower income backgrounds. The government’s priority should be to continue tackling inequality in higher education but instead they are removing vital help in a move which will hurt those who need it most.”

Wait & See?

Right now we cannot know what impact the removal of the maintenance grant will have on the numbers of students from poorer backgrounds, but you can bet there will be plenty of people monitoring the situation to see…

About Lynette Daly

Lynette is the publisher of Moving On magazine and content manager for Walpole Media Group. Moving On is devoted to helping young people make the right choices for their future – education, qualifications and careers. Moving On really wants to motivate you! Our articles cover a range of topics to inspire and give ideas. Our magazines are delivered free to all schools, colleges and sixth forms in England. It's also available online.

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