On top of this, those who make over £24,000 per year after graduating will have to end up paying quite a bit more than graduates had to in the past. Undergraduates that choose to take out the nearly £44,000 that they are eligible for as a way to help them cover their cost of living, as well as their courses, will find themselves up against a debt of more than £71,000 in all.

What is even more odd to many is that they may well end up better off if they do not receive large increases in their pay as time goes on. Those who never earn much will have their debts written off a full 3 decades after they graduate, just as they are entering their 50’s. According to some analysts, graduates may end up losing nearly half of every pound they earn, each pay cheque, to try and pay down their educational loans, pay into the national pension scheme, and pay both income tax and National Insurance.

These big changes that begin in 2012 will certainly end up altering the way students think about the possibility of attending university. Nearly £9,000 in fees make it a risky proposition for many students.

Andrews has insisted that those universities which do not ‘adapt’ to present changes will ‘die’ and that higher fees will go to those universities which are willing to make adaptations. Critics of the mergers say that the disparity in debt levels, with those students who are in universities that do not merge paying far more than those in merged universities, creates intense financial unfairness that jeopardizes the pursuit of higher education. This leads to increased levels of debt not just for students, but also for families and those caring for students as they pursue their degrees.

According to Ken Richards, a UK economist and also a former advisor on higher education, the merger could mean more money directed to educating students and improving the experience students have while in university. Examples of Welsh universities which would be merged include: University of Glamorgan, Newport University and University of Wales Institute Cardiff.

Part of the impetus for these mergers is that students not only in Wales, but across much of the UK today, are coming out of school so heavily indebted that it could take them years to achieve enough income to be free of that debt. This is seen as discouraging in many respects since, paired with excessive spending during university years, mounting debt could slow a graduate’s full participation in the UK economy.

The planned hike in tuition would nearly double the amount students pay for courses, with fees going to £6,000 in many cases, but upwards of £9,000 for others. With so many current and graduating students racking up debt so rapidly, even before these hikes many are opting for debt management plans simply to stay afloat and avoid even more dire financial straits before they have had a chance to begin their working life.

Liberal Democrats have been facing tremendous opposition from students due to a pre election pledge to fight any fee increase in tuitions. For their part, the MPs have stated that the proposed fee increases will be more fair to students than the system which is currently in place.

Protesting students point out that the plans, based on a Browne independent review of student finance, could dissuade those of lower economic classes from pursuing a university education. Before the Commons vote to take place on December 9th takes place, students are planning to take ‘massive action’, according to the National Union of Students.

Currently, fees are not allowed to exceed £3,290 and a number of MPs remain opposed to raising it with only a few MPs coming out to say they will vote against it.

Those pushing the proposals say students will not pay anything up front and that they do not need to begin paying back their degrees until they earn £21,000 – a figure that many believe will seem smaller around 2016 when the first wave of graduates would be coming out after the proposals passed, if they did. Already, students face a high cost of living and if inflation comes into play as many economic experts expect, the £21,000 could be a dramatically small amount in terms of its real world value and thus leave students struggling with heavy debt.

Conservatives continue to argue that low income students will have to put in less than the current system asks of them, under the new proposals, and that the fees must be raised to keep universities in Britain competitive at the global level.

Alternative plans such as graduate tax that takes only a portion of a graduate’s income, has not gained enough momentum to see popular support by the MPs.

This is a troubling development that some blame on Conservative Democrats who are going to be hitting those above £23,000 with higher taxes and offering cuts to those in lower income levels. According to Clegg, those who earn over the average are going to have to handle the tax burden due to a cut in public spending which is set to reduce services for those at lower income levels. An ‘extra contribution’ from those who earn £23,000 is what Clegg has publicly stated he intends to seek and this has upset many families who feel they are not in a position to give extra simply due to earning that much.

Clegg went on to say that those in the UK who are at the very bottom will be affected by what he referred to as the ‘most visible’ cutbacks and that the welfare budget will be slashed. He explained that the cash is what will be cut rather than the services, but this could be a huge hit to those who are already suffering at the bottom and rely on government funds to try to stay afloat and get work once again in an economy where finding a job has become a bit of a trick as businesses continue to lose confidence and cut back on their labor force.

Mr. Clegg cited that then between the years 1997 and 2010 the spending on welfare in ‘real terms’ rose by 49 per cent, but he did not state whether this took into account a rising cost of living or inflation of the pound or a variety of other factors. This causes financial experts to remain skeptical of his claims regarding the actual value of the spending increase and whether or not it was simply keeping up with rising costs during those 13 years.

Hanky panky is common in politics of any nation, but apparently Clegg has come under serious criticism when the British media showed a leaked email wherein he talked about cutting the budgets of England’s universities by £4.2 billion and then, 3 days later, spoke of a so-called fairness premium of £7 billion which would be used to help the poor obtain education. This caused Andy Burnham, Shadow Education Secretary, to cry foul over Clegg’s actions and state that making university more expensive for some while paying for others to go was deeply unfair.

Some teachers have even declared the education cuts to be ’savage’ and that with less chance for education of the proper sort, students are looking at coming out of school with enormous debt or simply not going at all and earning less over the course of their life times.

This is a harsh reality, but in many ways, not a new one. Students in countries such as Canada, the United States and, of course, the UK, have been paying extremely high fees for higher education for a number of years. The change now is that the recent economic down turn has made things a bit more harsh for those without a bit of a financial buffer. The ministers have accepted proposals that will end the annual cap applied to charges related to higher education and also the amount that repayments can be hiked. This, according to economic experts, means that graduates with an average income will end up repaying the most. Since the cost of a degree each year in course fees alone is set to rise by as much as £12,000 that means students will be leaving the university setting with debts in the neighborhood of £36,000 in addition to the living expenses while they were getting their education.

London has proven to have the highest cost of living and here students that face face the highest annual fees at £12,000 will end up leaving with a debt of around £90,000. Experts have also stated that British parents on an average annual income will be looking at around £50,000 per child to send them to university.

Those graduates are not going to be expected to pay right off the bat because they are allowed to begin repayment once their income reaches £21,000 a year and even at £25,000 the repayment would be around £7 each week. However, those earning a more realistic £60,000 needed for a modern life will need to pay £68 each weak that means they will most likely have the debt for their education throughout the majority of their working years. This, critics of the fees hikes say, is making a university education out of reach for the vast majority of middle income earning families.

The proposed changes were put forth by Lord Brow, a former BP chief who received his appointment from the previous Labour government who wanted to restructure the funding for higher education. While some concessions are being made to support low income family students via grants and a lack of repayments demanded from graduates who earn £21,000 or less, the issue ends up being that middle class grads will end up struggling due to their average income. Over time, the interest on these repayment plans will have them paying significantly more for their educations due to the repayment schedule they will most likely need to opt for. Wealthier students should be able to pay back their loans at a far faster rate.

With the cost of higher education expected to rise by a full 10% in coming years, many potential students may find themselves unable to afford a degree of their own. This news comes along with word that Goverment may lift the £3,100 cap on tuition fees since some vice-chancellors are calling for a doubling of fees after an expected review of funding levels which should take place later this year.

The National Union of Students warns that many incoming students are facing what they term “a lifetime of debt” due to these rises in schooling costs.

At the present time, undergraduate students can expect to owe £5,000 per year of schooling. This is going to be rising in the coming years, but also it must be taken into account that those pursuing mathematics, science or engineering courses face an additional £1,300 in books and additional fees, as well.

With all of these costs rising so rapidly, many students may end up deciding against schooling partway through. This phenomenon is leading to penalties on loans or grants that must be paid back at differing terms once students have left their degree programs. This means huge debt with many former students turning to IVAs and Debt Management Plans as a result since the debt further hinders their ability to establish the life they would like to lead.

Student Debt and Helpful Tips to Reduce Debt

There will always be student debt incurred by those wishing to pursue further education before starting their careers. This article is intended to show both the types of debt that can be taken on in the course of pursuing one’s education and some ways to help alleviate that debt which are available through your LEA (Local Education Authority).

Student Loans:

The SLC (Student Loan Company) pays student loans to students in order to help with living costs while they are attending a college or university. Usually, these are paid in three installments throughout the course of a given year. In order to get them apply to your LEA for each year of your course. A full 25% of a loan is based on you and your family’s income. You can expect a maximum of about £5,000 per loan.

Tuition Fees:

If you apply to your LEA before you start your course then you may be able to get help towards your tuition fees. The amount you get depends on you and your family’s income unless you get classed as an “independent student”. As an independent student you have to take into account that if you have a partner their income will be included as part of the assessment.

Grants and Allowances that may help you reduce your debt are below.

DSA’s (Disabled Students Allowances):

Students with disabilities may be eligible for a Disabled Students Allowance to help with costs they incur while attending their course. These are available to full-time and part-time students with disabilities. DSA assistance does not have to be repaid the way a student loan must. Consult your LEA in order to find out if you can claim.

Care Leavers Grant:

Students who have left care are often able to claim a Care Leavers Grant which will help with accomodations costs during the long vacation that is usually during the summer months. Consult your LEA to see if you can claim because it can be worth up to £100 per week during the long vacation.

Childcare Grant:

For those with childcare costs during their school term and sometimes during vacations, there is the the Childcare Grant they may be able to claim. The amount available depends on their income and the income of their dependants so consult your LEA if you want to attempt a claim.

Parents Learning Allowance:

Those wiht dependant children may be able to claim a Parent Learning Allowance to help with course related costs. Their income and their dependant’s income will be taken into account when it comes to eligibility.

Lone Parents Grant:

For students who are also lone parents there is the Lone Parent Grant that they may be able to claim which helps supplement their income. Depending upon their income the amount awarded can be different. Your LEA will be able to advise you if you can claim.

Higher Education Grant:

This newer grant can be worth up to £1,000 a year, but how much is awarded depends upon the student’s income and their household income, as well. For those with a household income around £15,000 the grant received should be around £1,000. Partial grants are made available to those with household incomes between £15,000 and £21,000. The grants pay out in three installments, one at the beginning of each term.