Changes to Undergraduate Tuition Fees 2012 – update for Home/EU students.
The University for the Creative Arts (UCA) is planning its response to the coalition government’s reforms on student finance. This statement follows a meeting with UCA SU representatives and outlines the key issues associated with these changes, including fees, which will affect students applying for 2012 entry.
What are the key implications of these reforms?
Central to the new scheme is that students will not have to pay up front for their tuition. This will be paid by a loan which will be repaid once graduates earn over £21,000 with any outstanding repayments written off after 30 years. However, from 2012 tuition fees in England will rise with universities able to charge between £6,000 to £9,000 a year.
Universities charging over £6,000 will have to draw up an Access Agreement with the Office for Fair Access (OFFA) outlining plans and related expenditure to widening participation and improve fair access. Depending upon the fee level proposed universities will be required to set aside up to £900 as an average per student, to target bursaries, scholarships and support for underrepresented socio-economic groups.
Universities have to submit their proposals this April and will have to wait for OFFA to confirm that plans are acceptable before they can publish tuition charges in July.
Why will fees rise?
Many people will ask why universities like UCA need to increase their fees. The fact is that these reforms shift the majority of the cost of higher education from the taxpayer to the graduate. Teaching budgets will be cut by 80%, this is around £2.9bn across the sector, and an increase in fees is the only way to offset this reduction in funding.
How is UCA responding to these changes?
At UCA we have undertaken research and financial modeling to determine appropriate strategies so we can remain sustainable in the medium to long term.
As a specialist creative arts university we also face some additional challenges. We will not be eligible to secure any special funding for STEM subjects (Science, Technology, Engineering and Maths) and the withdrawal of capital grants to invest in our estate, which traditionally received a subsidy between 60-80%, disproportionately affects us due to the number and relatively small size of our campuses.
So what is UCA planning to charge?
We know we need to charge at least £7,500 to replace the funding we will lose but we also need to take into account the additional expenditure related to widening participation initiatives, a requirement of our Access Agreement, and the need to increase investment in the student experience. Senior management and Governors have been considering options and our initial assessment is that we should charge a single unilateral fee rather than employing a differential fee strategy. The former would better represent our unique creative learning community whereas the latter may create internal competition with courses set against each other based on cost.
It is our intention to finalise our fees strategy over the next few months so we can confirm our tuition charges in July, subject to OFFA approval.
Are there any implications for current students?
Current students, including those with the offer of a place and taking up entry in 2011, are not affected by these changes and will be subject to a tuition fee of £3,375 (for the first year, increasing with inflation for following years).
However, students that defer entry from 2011 to 2012 will be subject to the new funding arrangements.
Where can I get further information?
Further details can be found at www.direct.gov.uk/studentfinance and if you have any views or comments on UCA’s approach to fees we would be keen to hear them via the Student’s Union or the Student Forums.
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