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UK universities in trouble - why not add VAT to tuition?

579 replies

80smonster · 09/08/2024 19:03

UK universities are in trouble, apparently many could close, why not charge VAT on tuition fees (for those that are financially viable)? Bridget Phillipson says they are autonomous institutions and won’t be given a public bail out - they should rely on their own resources:
https://www.theguardian.com/education/article/2024/aug/09/english-universities-face-autumn-tipping-point-as-financial-crisis-looms

YABU - don’t add the VAT
YANBU - add the VAT

English universities face autumn ‘tipping point’ as financial crisis looms

Vice-chancellors fear weaker institutions need bailout to avert failure due to fewer students and higher costs

https://www.theguardian.com/education/article/2024/aug/09/english-universities-face-autumn-tipping-point-as-financial-crisis-looms

OP posts:
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13
jamimmi · 11/08/2024 00:45

newmummycwharf1 · 10/08/2024 23:24

Agree with shorter degrees where appropriate. And reducing the repayment rate.

Employers contributing to cost of training their future staff....not sure how that would work. They should just pay decent salaries.

And I don't agree that every student should get access to the same loans. Also feel strongly about grants for those from low income households but someone upthread said they get bursaries - which is as it should be.

In Wales everyone gets the same amount, thena count you pay back is i belive dependant on household income. But tbh while I support kids from lower income families getting more support in the current system, why are we basing loans for adults on their parents income?

1dayatatime · 10/08/2024 23:31

Greytulips · 10/08/2024 23:08

Why would we want to charge our young people more money?
Many adults got a free degree.

Young people need to get out there and vote - get their voices heard!

I agree that money spent on education is an investment in the future of the economy but where do you suggest the money comes from?

Other than the typical MN response of "tax the rich " where rich is defined as anyone earning 50% more than the poster or increased debt which as Liz Truss found out the hard way is not an option.

newmummycwharf1 · 10/08/2024 23:24

jamimmi · 10/08/2024 23:16

Reading this with increasing disbelief. We as a nation need a highly educated workforce to succeed. A middle income just over the threshold for anything more than min loan household who struggled to support ds at an expoly( with better employment rates than the Russell group uni in the same city) how on earth is raising student loans and adding vat going to help. Students just won't go. We won't have teachers, health care staff, engineers etc. Yes apprenticeship sound fab on paper, degree apprenticeship are few and far between and are in general more competitive than medicine to get into. Wages for apprenticeship are often only £6.50 an hour so you have to fine one within commute of home fine if your in a city sh*t if your not. Very able academic dd is currently thinking she may not go she's a straight A student doing math, bio, chem, but the cost scared her to death, many of her friends say the same thing. All very bright but not affluent kids. We are about to loose their potential and need to fund this properly for all. I should add its made worse by seeing her scottish cousin with richer parents get a free degree. As we are supposedly one country this also needs addressing. For those of you saying part time job, she's tried all summer but there is nothing near us that is not filled by the semi retired or you need to be 18 for, so not until next July. My suggestion yes increase degree cost to support uni , give every adult the same amount, based on mimimum wage, paid back on the loan at the current Base rate only, not the current 7 to 8% charged. Reduce degree length to 2 years. (Completely possible for most degrees) Once working in a role that needs your degree ( with the exception of public sector, who just get a discount) your employer also contributes to paying of your loans at a set level of 3% above £25000 or equivalent for example. So costs covered, degrees shorter so less loan, appropriate ways of paying back and buisness contribution to cost of traing their staff. Unis better funded. Less economally viable degrees lost.

Agree with shorter degrees where appropriate. And reducing the repayment rate.

Employers contributing to cost of training their future staff....not sure how that would work. They should just pay decent salaries.

And I don't agree that every student should get access to the same loans. Also feel strongly about grants for those from low income households but someone upthread said they get bursaries - which is as it should be.

jamimmi · 10/08/2024 23:16

Reading this with increasing disbelief. We as a nation need a highly educated workforce to succeed. A middle income just over the threshold for anything more than min loan household who struggled to support ds at an expoly( with better employment rates than the Russell group uni in the same city) how on earth is raising student loans and adding vat going to help. Students just won't go. We won't have teachers, health care staff, engineers etc. Yes apprenticeship sound fab on paper, degree apprenticeship are few and far between and are in general more competitive than medicine to get into. Wages for apprenticeship are often only £6.50 an hour so you have to fine one within commute of home fine if your in a city sh*t if your not. Very able academic dd is currently thinking she may not go she's a straight A student doing math, bio, chem, but the cost scared her to death, many of her friends say the same thing. All very bright but not affluent kids. We are about to loose their potential and need to fund this properly for all. I should add its made worse by seeing her scottish cousin with richer parents get a free degree. As we are supposedly one country this also needs addressing. For those of you saying part time job, she's tried all summer but there is nothing near us that is not filled by the semi retired or you need to be 18 for, so not until next July. My suggestion yes increase degree cost to support uni , give every adult the same amount, based on mimimum wage, paid back on the loan at the current Base rate only, not the current 7 to 8% charged. Reduce degree length to 2 years. (Completely possible for most degrees) Once working in a role that needs your degree ( with the exception of public sector, who just get a discount) your employer also contributes to paying of your loans at a set level of 3% above £25000 or equivalent for example. So costs covered, degrees shorter so less loan, appropriate ways of paying back and buisness contribution to cost of traing their staff. Unis better funded. Less economally viable degrees lost.

newmummycwharf1 · 10/08/2024 23:11

Greytulips · 10/08/2024 23:08

Why would we want to charge our young people more money?
Many adults got a free degree.

Young people need to get out there and vote - get their voices heard!

I agree - we need to be looking at ways of supporting them so the next generation is better off than the one before

Greytulips · 10/08/2024 23:08

Why would we want to charge our young people more money?
Many adults got a free degree.

Young people need to get out there and vote - get their voices heard!

newmummycwharf1 · 10/08/2024 23:03

ImpossibleTh1ng · 10/08/2024 22:59

But why would anybody want to go to Iowa or any other obscure US uni as opposed to a perfectly good UK uni with safe funding that UK employers would have actually heard of.

US degrees are different too. Broader. Suits some but not everybody or all careers in the UK.

The broadiness is the appeal for many. A liberal education. I feel the UK narrows far too early. Basically at Alevels

I agree re random US uni - the topic came up based on comments made earlier in the thread

ImpossibleTh1ng · 10/08/2024 23:00

newmummycwharf1 · 10/08/2024 22:57

Also posted about the 100 or so UK students that go to Yale each year. Most likely wealthy but if a non-wealthy kid did get admission, they would be eligible for needs blind support up to full ride

Needs blind at Yale is harder than getting into Oxbridge. The entire world will be applying.

TizerorFizz · 10/08/2024 22:59

@ImpossibleTh1ng This is, of course, why we have loans. Unis do give bursaries to fsm dc. This can give them more ready money then those from hard up slightly higher earners who might have two at uni at the same time. As we’ve been doing this for years, has it worked for social mobility? Not entirely sure if we have data on this.

I do actually think new parents should be encouraged to save for uni if they can. So many still don’t understand they should pay, therefore info given when dc start school would be good. Even a high interest savings account to be used for this could be launched. Info is key,

ImpossibleTh1ng · 10/08/2024 22:59

newmummycwharf1 · 10/08/2024 22:55

University of Iowa was a random example as I know someone there on multiple scholarships - who is academically gifted.

Cost of attendance is exactly that - I mention that in another post. It is the same concept in most countries - tuition, board, books etc

And my posts always referred to academic giftedness and other (e.g. sport). However I do know that sport in the UK is often elitist unlike parts of the States

If it helps, we lived in the US, hubby went to university there and we still have family at uni there.

But why would anybody want to go to Iowa or any other obscure US uni as opposed to a perfectly good UK uni with safe funding that UK employers would have actually heard of.

US degrees are different too. Broader. Suits some but not everybody or all careers in the UK.

newmummycwharf1 · 10/08/2024 22:57

mathanxiety · 10/08/2024 22:44

I'm not wrong. I live in the US, and for various reasons that I'm not going to go into here, I am very aware of how scholarships and financial aid work for both domestic and international students.

Tuition is not the same as "cost of attendance".

A student looking to go to Iowa on international student merit scholarships plus a patchwork of other scholarships (faculty merit, special interest, specific population/ heritage, etc) would be trying to 'enter by the eye of the needle' - and there would be no real reason to do so when there are better universities in the US and elsewhere.

The bottom line is that an international student at Iowa would have to come up with $50k-$54k every year. This number is the cost of attendance, which is comprised of tuition, plus room and board, plus required incidentals such as various fees and student health insurance. As you can see, cost of attendance is significantly higher than tuition alone.

Depending on cobbling together several scholarships wouldn't be a good idea unless the student was either very gifted academically or very reckless, or had the bank of mom and dad to fall back on if the scholarships went to someone else. If they came up short for whatever reason, the bursar would politely explain to them that without their check for the full amount owed per semester, enrollment wouldn't be possible.

If very brilliant, why not try to get into one of the half dozen or so universities that offer a full ride to the highly qualified international applicants they welcome, if family finances mean they otherwise wouldn't be able to attend? MIT, Harvard, Princeton...

Also posted about the 100 or so UK students that go to Yale each year. Most likely wealthy but if a non-wealthy kid did get admission, they would be eligible for needs blind support up to full ride

newmummycwharf1 · 10/08/2024 22:55

mathanxiety · 10/08/2024 22:44

I'm not wrong. I live in the US, and for various reasons that I'm not going to go into here, I am very aware of how scholarships and financial aid work for both domestic and international students.

Tuition is not the same as "cost of attendance".

A student looking to go to Iowa on international student merit scholarships plus a patchwork of other scholarships (faculty merit, special interest, specific population/ heritage, etc) would be trying to 'enter by the eye of the needle' - and there would be no real reason to do so when there are better universities in the US and elsewhere.

The bottom line is that an international student at Iowa would have to come up with $50k-$54k every year. This number is the cost of attendance, which is comprised of tuition, plus room and board, plus required incidentals such as various fees and student health insurance. As you can see, cost of attendance is significantly higher than tuition alone.

Depending on cobbling together several scholarships wouldn't be a good idea unless the student was either very gifted academically or very reckless, or had the bank of mom and dad to fall back on if the scholarships went to someone else. If they came up short for whatever reason, the bursar would politely explain to them that without their check for the full amount owed per semester, enrollment wouldn't be possible.

If very brilliant, why not try to get into one of the half dozen or so universities that offer a full ride to the highly qualified international applicants they welcome, if family finances mean they otherwise wouldn't be able to attend? MIT, Harvard, Princeton...

University of Iowa was a random example as I know someone there on multiple scholarships - who is academically gifted.

Cost of attendance is exactly that - I mention that in another post. It is the same concept in most countries - tuition, board, books etc

And my posts always referred to academic giftedness and other (e.g. sport). However I do know that sport in the UK is often elitist unlike parts of the States

If it helps, we lived in the US, hubby went to university there and we still have family at uni there.

newmummycwharf1 · 10/08/2024 22:51

ImpossibleTh1ng · 10/08/2024 22:42

Well I think we all know current loans are linked to parental income. It’s a stupid system however better than the even stupider system of making parents shell out £80k for future adults as opposed to those adults getting loans they fund themselves.

£18k is not £70k.

£100 a month over 18 years is £21k; saved in a global ETF tracker fund at 5% annualised interest (conservative) is £35k. That is half of what is required. Better than facing the prospects of carrying the burden on your own at 18 but you do you.

ImpossibleTh1ng · 10/08/2024 22:50

mathanxiety · 10/08/2024 22:44

I'm not wrong. I live in the US, and for various reasons that I'm not going to go into here, I am very aware of how scholarships and financial aid work for both domestic and international students.

Tuition is not the same as "cost of attendance".

A student looking to go to Iowa on international student merit scholarships plus a patchwork of other scholarships (faculty merit, special interest, specific population/ heritage, etc) would be trying to 'enter by the eye of the needle' - and there would be no real reason to do so when there are better universities in the US and elsewhere.

The bottom line is that an international student at Iowa would have to come up with $50k-$54k every year. This number is the cost of attendance, which is comprised of tuition, plus room and board, plus required incidentals such as various fees and student health insurance. As you can see, cost of attendance is significantly higher than tuition alone.

Depending on cobbling together several scholarships wouldn't be a good idea unless the student was either very gifted academically or very reckless, or had the bank of mom and dad to fall back on if the scholarships went to someone else. If they came up short for whatever reason, the bursar would politely explain to them that without their check for the full amount owed per semester, enrollment wouldn't be possible.

If very brilliant, why not try to get into one of the half dozen or so universities that offer a full ride to the highly qualified international applicants they welcome, if family finances mean they otherwise wouldn't be able to attend? MIT, Harvard, Princeton...

Being bright isn’t enough for those 3 unis on a full ride. Insanely bright students will find it harder than Oxbridge. You’re competing against the whole world and need to have something different in addition to being the best of the best with beyond impressive relevant extra curriculars.

mathanxiety · 10/08/2024 22:44

newmummycwharf1 · 10/08/2024 19:25

You are wrong. Again - there are multiple scholarships and funds that are available to international students.

Using the University of Iowa as an example - max university scholarship is $15k for international students. There are additional scholarships available depending on actually major - some up to $11k. In addition - as explained earlier, there are third party organisations that offer scholarships/grants. International tuition fees are circa $30k at UoI. Do your research

When I went to school in the UK - as an international student in med school - I paid my fees. However, I also accessed scholarships and funds from third parties because I researched it. My entire 3rd year was funded by a scholarship that involved writing a winning essay. I won 2 others that secured £1k and £2k separately.

I actually take pride in raising funds for education - not just for the money raised but the feeling of achievement they provide. It makes a young person feel they can do anything and their ideas are worth something in the world

I'm not wrong. I live in the US, and for various reasons that I'm not going to go into here, I am very aware of how scholarships and financial aid work for both domestic and international students.

Tuition is not the same as "cost of attendance".

A student looking to go to Iowa on international student merit scholarships plus a patchwork of other scholarships (faculty merit, special interest, specific population/ heritage, etc) would be trying to 'enter by the eye of the needle' - and there would be no real reason to do so when there are better universities in the US and elsewhere.

The bottom line is that an international student at Iowa would have to come up with $50k-$54k every year. This number is the cost of attendance, which is comprised of tuition, plus room and board, plus required incidentals such as various fees and student health insurance. As you can see, cost of attendance is significantly higher than tuition alone.

Depending on cobbling together several scholarships wouldn't be a good idea unless the student was either very gifted academically or very reckless, or had the bank of mom and dad to fall back on if the scholarships went to someone else. If they came up short for whatever reason, the bursar would politely explain to them that without their check for the full amount owed per semester, enrollment wouldn't be possible.

If very brilliant, why not try to get into one of the half dozen or so universities that offer a full ride to the highly qualified international applicants they welcome, if family finances mean they otherwise wouldn't be able to attend? MIT, Harvard, Princeton...

ImpossibleTh1ng · 10/08/2024 22:42

newmummycwharf1 · 10/08/2024 22:33

Current loans are linked to parental income. And life chances of individuals are markedly determined by their parents - newsflash. More important factor than type of school for instance.

And many countries have models where parents save for university costs to set them up.

£100 a month per child would make a huge dent in that and summer jobs leading up to uni; the child gets to go to uni with little to no debt

Well I think we all know current loans are linked to parental income. It’s a stupid system however better than the even stupider system of making parents shell out £80k for future adults as opposed to those adults getting loans they fund themselves.

£18k is not £70k.

newmummycwharf1 · 10/08/2024 22:33

ImpossibleTh1ng · 10/08/2024 22:18

Ridiculous.

The life chances of adults decided by parents they no longer live with.

Very few families now will be able to afford £70k per child when most are struggling to get on the housing ladder.

Current loans are linked to parental income. And life chances of individuals are markedly determined by their parents - newsflash. More important factor than type of school for instance.

And many countries have models where parents save for university costs to set them up.

£100 a month per child would make a huge dent in that and summer jobs leading up to uni; the child gets to go to uni with little to no debt

Babush · 10/08/2024 22:30

The biggest problem facing universities is a large drop in the number of Chinese students choosing to study abroad. This was a cultural change that happened during the covid lockdowns.

It’s not possible to replace these students. Chinese students are wealthy. They come to study, they don’t bring dependents, they don’t break visa terms, they don’t seek work visas. Politically it’s not possible to encourage students from poorer countries because they nearly always want to stay here either legally or illegally.

BallooningBumblebee · 10/08/2024 22:25

Are we overlooking the fact that a cornerstone of an economically successful country (one with high wages, good public services, high growth etc) is a highly skilled, highly educated workforce. Which yes means traditional highly skilled jobs (drs, engineers, computer scientists, professors etc) but also those with vital skills to make the rest of the country work (nurses, tradesmen, farmers, teachers).

The more we can upskill our populace, the wealthier we will all be as a country. A successful university sector is vital.

ImpossibleTh1ng · 10/08/2024 22:18

newmummycwharf1 · 10/08/2024 22:09

In my opinion - grants for those with low incomes (similar to say FSM, government determines what low income is). The others save for their kids to go. Government announce it so that those with kids from Year 3 downwards know they have to save for them to go if they want them to. So everyone has a minimum of 10 years to save and future generations have 18 years at least.

Loans available but not the types that you never pay back.

Apprenticeships and trade options made more widely available.
Universities allowed more leeway to set fees so they are not perpetually on the brink of bankruptcy but some legislation in place to ensure they are reasonable. International students very welcome but workforce plan in place to ensure there are enough places to support workforce needs for the UK (since internationals may go back to their countries or elsewhere).

There should be fewer universities and employers should recognise accredited apprenticeships as equivalent where appropriate.

For someone from a family with a household income of say £40k - going to university to obtain a degree that increases your value in the marketplace and coming out with little to no debt is more likely to improve social mobility than the current situation with degree inflation and no real added-value/differentiator to many of them

Ridiculous.

The life chances of adults decided by parents they no longer live with.

Very few families now will be able to afford £70k per child when most are struggling to get on the housing ladder.

newmummycwharf1 · 10/08/2024 22:09

ImpossibleTh1ng · 10/08/2024 21:49

What happens to those whose parents can’t or won’t save £70k per child? The vast majority won’t with the cost of property, rental and the cost of living.

In my opinion - grants for those with low incomes (similar to say FSM, government determines what low income is). The others save for their kids to go. Government announce it so that those with kids from Year 3 downwards know they have to save for them to go if they want them to. So everyone has a minimum of 10 years to save and future generations have 18 years at least.

Loans available but not the types that you never pay back.

Apprenticeships and trade options made more widely available.
Universities allowed more leeway to set fees so they are not perpetually on the brink of bankruptcy but some legislation in place to ensure they are reasonable. International students very welcome but workforce plan in place to ensure there are enough places to support workforce needs for the UK (since internationals may go back to their countries or elsewhere).

There should be fewer universities and employers should recognise accredited apprenticeships as equivalent where appropriate.

For someone from a family with a household income of say £40k - going to university to obtain a degree that increases your value in the marketplace and coming out with little to no debt is more likely to improve social mobility than the current situation with degree inflation and no real added-value/differentiator to many of them

mathanxiety · 10/08/2024 22:06

newmummycwharf1 · 10/08/2024 20:00

Then they don't really want an improvement. I don't see a choice because VAT on private schools, even if it raised £2billion, will not deliver the improvements required. We need more funding per student.

Your statement was not a paraphrase but you know that

Edited

You are right that VAT isn't the answer.

You are also right that the public gets what it is willing to pay for in taxes.

Pay little, get crappy state services - be that the NHS or schools not fit for purpose.
Pay more, and hold politicians accountable for services - get an improvement. Or so goes the hope.

I did take the paraphrase to its inevitable conclusion, so yes, I took a liberty. I agree with you that at present there is a choice - but only for those who can afford it (and for those who have taken care to live in a grammar area).

Southwestten · 10/08/2024 22:03

What does spoon feeding even mean?

It’s one of those phrases that gets mentioned every time there’s a thread about private schools like ‘entitled’, ‘unqualified teachers’, ‘privilege bubble’, ‘posh snobs’ etc.
I guess it means something like the teachers teach the syllabus and answer questions about it. Or something like that.

ImpossibleTh1ng · 10/08/2024 21:49

newmummycwharf1 · 10/08/2024 21:42

The poster said she does not believe there should be tuition fees. Hence my response stating what I think would work better than no tuition fees, or even tuition fees with the current loan system

What happens to those whose parents can’t or won’t save £70k per child? The vast majority won’t with the cost of property, rental and the cost of living.

newmummycwharf1 · 10/08/2024 21:42

ImpossibleTh1ng · 10/08/2024 21:38

There are tuition fees and there is a loans system.

The poster said she does not believe there should be tuition fees. Hence my response stating what I think would work better than no tuition fees, or even tuition fees with the current loan system

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