Applications are down by 8.7% overall. This is what we would expect from the law of demand, price up, quantity down. And in terms of price elasticity demand that's pretty inelastic as the price change, at least on the surface, is at least 100% and in the 'better' universities 200%.
But should students turn away from a university education? The problem with education is that it is an imperfect information good. Consumers of education will not consider two aspects of university education:
1. The benefit to society generally of having a better educated workforce.
2. The full benefits to themselves of attending university.
Potential university students only consider the benefit they believe they will get and weigh them against the cost of attending university. However students rarely realise at the time how much extra income a degree brings them. Nor do they consider their increased productivity and the benefit to the countries productive capacity.
Overall this means that consumers by less education than is allocatively efficient. This is an argument for subsidising education not raising the costs. Indeed some of us got paid to go to university, but maybe I will stop at that!
I know the cost of tuition to go to university is rising and people are complaining that it is unfair - especially how the increase was by so much from £1000 to £9000 and from the article it will increase even more - but honestly there places for example American universities where the cost of tuition is £30000 or more plus living and other things which costs around £20000. All in all you can be paying £50000 or more if you want to study in America - I think people should think carefully when they want to complain about the small amount we have to pay - it is not even half of what the American unis require - Also i agree with the statement that the demand for unis will go down as people are finding it to expensive to attend - i say good on them in a way!!!! - Uni used to be about going into further education so that you can guarentee a good job with all your qualifications but as time goes on we are seeing more and more graduates without a job. Unemployed and living off benefits. Employers are not looking for whether you can write a beautiful poem or whether you can do calculus they are looking for how much EXPERIENCE you have - As with that experience you can work well and efficiently in their company. That is why you are seeing more people with good payed jobs that have taken a risk and have not gone to uni. Although I want to go to uni - sometimes I feel this may not be the best option - Chidera Chukwumah IB Deps
ReplyDeleteAs everyone knows, there are government loans available so we can have the opporunity to go to University - and as we go to charity school we all know that fees do not necesarily mean that it is just the wealthy that can achieve higher education. Maybe it is for the better that less people are applying to University, as it might reinstate the meaning of a degree, and for those who are lucky enough to go to Uni it might in the long term be easier to get a job, as not everyone will have a degree. However, to be in so much debt at a young age is not a good thing - so maybe Uni will have to wait a while.
ReplyDeletethe real cost of a university education is roughly £18,000 - £24,000 which is what Universities charge international students who do not obtain scholarships. Compared to this an increase to £9000 maximum isn't as bad as most people think. However one problem with the policy is that the fee increase is applicable across the board rather than just being for the high end universities. But having a degree does greatly increase your value to the employment industry and opens up a lot more job opportunities which bring a higher potential income so it only has a short term impact on your income level but long term it is financially profitable to go to university.
ReplyDeleteJust the fact that going to univeristy is inelastic shows just how much people still feel the need to go and get advanced degrees and qualifications. Not only do some poeple actually need to go to university (for example if you were aspiring to do medicine or engineering)and not only are people aware that degrees can bring in extra income but I think that there is still a mental issue with the thoughts of going to university and how society may see you if you do not go. I think that even though a lot of the youth are still angry about education fees, most of us have the hope that if we can go to university and do well, we can pay off these bills no problem.
ReplyDeleteI agree with Rhianna. In this day and age, having a degree seems to be the minimum requirement for a job. This may be down to how competitive the market has become over the years or maybe because it's mandatory for certain professions e.g. teaching. Even before the raise in fees, university applications, although has seen increase in demand over the years, was still not for everyone. These people might have gone into internships and apprenticeships. If you have the courage to do this and it works for you, then good; it's more direct and stops you from wasting money on university fees. The increase in fees may be unfair, but for those who aspire to go to university, they have to realise that going on to higher education is an investment.
ReplyDeleteI think that people are beginning to consider the opportunity cost of university (e.g. getting an apprenticeship or a job) now that the fees have risen. However people should remember that there are still government loans available and the value of the experience of going to university and getting a degree.
ReplyDeleteIn short, people should seriously think about which path is best for them.