The year 2012 marked a significant turning point in student finance in England, with a major overhaul that substantially altered the financial landscape for higher education. This shift, implemented by the coalition government, involved a dramatic increase in tuition fees and a restructuring of the student loan system, impacting both current and future generations of students.
The most prominent change was the tripling of the cap on tuition fees. Universities were now permitted to charge up to £9,000 per year, a stark contrast to the previous limit of £3,290. This substantial rise was justified by the government as a means to reduce the burden on taxpayers and shift the cost of higher education more directly onto the beneficiaries – the students themselves. Universities argued that the increased fees were necessary to maintain the quality of teaching and research in the face of diminishing public funding.
To mitigate the immediate impact of these higher fees, the government also made changes to the student loan system. The repayment threshold, the salary level at which graduates begin repaying their loans, was increased to £21,000 per year. This meant graduates earning below this threshold were not required to make any loan repayments. While this seemed beneficial on the surface, the repayment terms were also altered. The repayment period was extended to 30 years, and any outstanding debt was written off after this period. This seemingly generous provision meant that graduates would likely pay back more in the long run due to accrued interest, particularly those with lower-to-middle incomes.
The changes sparked widespread protests and debates across the country. Students and academics argued that the higher fees would deter students from disadvantaged backgrounds from pursuing higher education, creating a two-tiered system where access was increasingly dependent on wealth. Concerns were also raised about the long-term debt burden placed on graduates, potentially impacting their life choices, such as purchasing a home or starting a family.
The government countered these criticisms by arguing that the new system was more sustainable in the long run and that access to higher education would not be affected. They pointed to the increased availability of loans and the higher repayment threshold as measures to protect students from hardship. Furthermore, they argued that the higher fees would incentivize universities to provide better quality education and focus more on student satisfaction.
The long-term impact of the 2012 changes is still being analyzed. While initial concerns about a sharp drop in university applications from disadvantaged students did not fully materialize, concerns persist about the increasing levels of student debt and the potential long-term consequences for graduates’ financial well-being. The debate continues regarding the fairness and sustainability of the current system, with calls for alternative funding models and a re-evaluation of the role of government in financing higher education.
868×1400 student png from pngimg.com 
1920×1271 student studying stock photo public domain pictures from publicdomainpictures.net 
1920×1716 student stock photo public domain pictures from www.publicdomainpictures.net 
960×640 library books shelves photo pixabay from pixabay.com 
4200×2800 archives from www.lifewiththequirkyboys.com 
1280×891 curious student stock photo public domain pictures from www.publicdomainpictures.net 
820×787 dr reflects difference st century from drzreflects.blogspot.com 