Posts Tagged ‘tuition fees’

The arguments against tuition fees

Sunday, July 26th, 2015 | Religion & Politics, Thoughts

Last year I argued that there is little difference between having and not having university tuition fees. The arguments placed against it were largely insubstantial and I have yet to have a decisive point against tuition fees.

However, in this article I will offer some arguments that could be used to defeat the idea.

Putting poorer students off

There has been a decline in university applications since the rise in tuition fees. According the BBC, the number of applicants dropped nearly 10%.

This is in itself not a problem. When people realise the full cost of university, perhaps people decide that it is not worth it. Which could legitimately be the case. Wages are market-driven thus the skills we need could continue to attract applicants while those we don’t could see a drop-off, and this would be the system working.

It would, however, be a problem if it turned out that there was a substantial drop in applicants from poorer backgrounds while wealthier backgrounds did not see such a drop as this would suggest we are creating a less egalitarian society.

However, this is not the case, and thus this argument falls down. According to the UCAS figure discussed in the previously mentioned BBC article, applicants from disadvantaged backgrounds dropped only 0.2%, while those from privileged backgrounds dropped 2.5%.

Supply and demand

In theory you might expect tuition fees to better match the demand for labour. This is because people might be more inclined to choose professions such as doctors, lawyers, engineers, etc, that give them a chance to pay off their loan. Whereas my guess (and it is a guess, I have no figures to back this up) is that people who study English or contemporary art, will be less likely to pay the loans off.

This does not necessarily follow though. If you are going to be a penniless artist you do not need to worry about paying your loan off because it is income dependent.

Also this assumes that people pick their courses both rationally and with financial ends in mind, neither of which may be true.

An alternative system that better match skills shortages to labour is a system such as Finland operate. In Finland, it’s free to go to university. You get like five years free, including a maintenance grant, which is enough time to do a bachelors and a masters. It’s open to all EU citizens for free too!

The catch is that there is a cap. They only take so many people, so if you want to go study sports science for example, there may be say 50 places per year and if you don’t make the cut, you don’t be doing that subject (or any subject).

This system means that people could potentially miss out on higher education. Though more likely they will just switch onto an under-subscribed course. However it does do a good job of making sure that the best people are fulfilling the countries labour needs.

Long term equality

In Capital in the Twenty-First Century Thomas Piketty suggests there is evidence that a more highly educated population leads to higher levels of equality in the long term, as shown by the Nordics.

Therefore we may decide that as tuition fees put people off attending university (this point is debatable, though applications have gone down in the short term), we may want to pay for as many people to go to university so that in the long term we create a better, more equal society.

Is there any difference between having tuition fees and not having them?

Thursday, February 13th, 2014 | Thoughts

I, on the whole, support tuition fees. Why? Because I do not think that poor people, with less earning potential than myself, should have to subsidise my education. If someone is working really hard driving a taxi every day, why should they pay for me to go to some fancy-pants university and get a piece of paper that entitles me to earn more money than them?

But I am not entirely decided on the issue. There are lots of good reasons to support not having tuition fees. For example, it probably puts people off going to university (I have not checked the stats, but I imagine this is the case). That argument in itself has factors that both support and oppose tuition fees.

The alternative, as well as realise though, is not a free education. I cannot be “free”. It has to be paid for in a capitalist economy. The alternative is an education paid for by the state, and thus reclaimed from taxes.

Either way, some one pays.

You could argue though that in a progressive tax system, the same person pays. Imagine these two scenarios:

Scenario 1, tuition fees. I pay £20,000 to go the university, except I do not pay it, because it is a student loan, taken by PAYE when I start earning. So I pay nothing up front to go to university. I go, do my degree and then graduate. Then I get a job and if I earn plenty of money I repay my student loan via the PAYE tax system. If not, I do not pay it.

Scenario 2, no tuition fees. There are no tuition fees so I pay nothing up front (just like above). i go, do my degree and then graduate (just like above). Then I get a job and if I earn plenty of money I pay a higher tax because the government has to fund all the education (as above). If not, I do not pay it (as above).

The scenarios above are basically the same. Either way, university is free at the point of access and funded by reclaiming the money using taxation. What difference am I missing?