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Student Loans the Changes
How will student loan changes affect yours or your children. In this article I cover take home pay as the core focus moving away from the discussion on interest rates. The importance is how it affects you and your loved ones budgets and helping you explore this on a monthly basis rather than abstract figures.
With recent articles focusing on student loan changes coming into affect you maybe wondering how will this affect you or your children.
The Interest Rates:
If you are in the pre-2012 group the good news is the interest rate and impacts on repayments will not be affected. The post-2012 and the 2023 intakes are affected. Because RPI used in student loan calculations like other, areas of the economy have been affected by inflation. This has caused the RPI to increase from 1.5% for the 2012 intake to 9% plus 3%. Now the Institute for Fiscal Studies (IFS) is suggesting a cap to reduce the volatility and to keep the interest rate at a manageable level. Now whilst interest rates for the 2023 intake will gain more protection on interest rate fluctuations the main change is the repayments.
The Winners and Losers:
No the changes in student loan repayments makes it so that graduates are more likely to pay their loans back. If you are a learner who graduated on the old pre-2012 system when you graduate at say 21-22 your debt would wipe after 30 years. Now under the new system you will likely pay this off over 40 years or once you reach your early sixties. Now with the rates being capped those earning high graduate salaries with high predicted salary growth think doctors, lawyers, and those in financial roles will benefit from paying the loan back quicker as they would otherwise be paying more in interest over a longer period. Now fields or professions where you earn a lower threshold you would often benefit from paying less early in your career when you are at or under the repayment threshold which would continue to rise as changes to wage averages. Yet with this being frozen more wages that will have been inflated will creep over the threshold rather than stay at or below the mark. Which means paying the loan back, over a longer duration without realistically ever being predicted enough to pay it off completely.
Repayments:
Now the thing to remember here is not to treat the debt like other debts. Martin Lewis covers this in great detail and has highlighted the numerous problems with framing student debt as debt. Whilst it is important to be aware of it what is more crucial is to think of it in relation to your take home pay. Now Martin uses the example of someone earning £37,295 and gives numerous examples of interest rates but highlights as you only repay 9% of anything above 27,295. So thats 9% of £10,000 or £900 per annum regardless of interest rates you repay the exact same amount. Your take home salary per month with this example is £3,108 with 3% on your pension (£93) £19 HMRC pension, £273 NI and £75 on your student loan. That is just less than a family pizza deal a week over a monthly period. Leaving the student with £2,273 a month take home pay which other expenses and living costs would come out of.
Worth Remembering:
Unlike other “Debts” student loans do not affect your credit score in the UK. They do not continue paying if your situation changes or you lose your job. If you are paying any debt off early unless you are earning a significantly high income you are better to focus paying off mortgages, loans or other debts first. So whilst these changes will have an affect and the new loan system will affect learners it is still not going to act as a barrier to going to university however, do look at degree apprenticeships, traineeships or apprenticeships. Often many of these have many of the benefits of degrees without any direct cost to you. It’s your choice be the best you, you can be.
https://www.savethestudent.org/news/student-loan-repayment-changes.html
https://ifs.org.uk/publications/15953
https://www.gov.uk/government/news/fairer-higher-education-system-for-students-and-taxpayers
Challenges with EHCPs
One of the core reasons why I got into teaching was to champion the aspirations of young people and to allow them to succeed. Due to specialising in land-based subjects such as Agriculture and Animal Studies I aspired to support the next generation of farmers, equestrians and conservationists. However, I became aware of challenges facing young people rurally was vastly different to those in urban areas. One area, in particular, those with SEND needs so although I continue to aim to support these learners in the classroom I recognise that more needs to be done to highlight their cause across the county and that is one of the reasons I am standing as a County Council candidate this May.
What are they?
EHCPs or Education Health Care Plans (EHCPs). While traditional Special Education Needs (SEN) funding is met through national funding provided to schools. EHCPs are legally binding provisions that outline additional funding for learners who need further or specific support to allow them the same opportunities to access the education system and to be able to succeed.
My Experiences:
Having taught a variety of learners in my time as a lecturer over the last several years, I have recognised the challenges facing the student and their parents who are trying to provide the best opportunities for their child and the difficulties of these EHCPs. The premise of these documents is to increase aspirations and support the learners, but to achieve this, the parents often need a great deal of support and have the correct tools to raise their points in meetings. The problem is two factored here often the parent does not necessarily have all of this knowledge readily available to them. Although support is present and schools or relevant professionals can support them, there is a risk that families are falling through the cracks. I have seen learners who have had their EHCPs lapse who then struggle to get the support put in place midway through the year to allow them to succeed, which causes distress and disruption to the families after the best for their children. The other problem is that the young people, whilst the focus of the meeting may have different views from those supporting them. Hence, it is crucial their aspirations, and their parents are reviewed together but noted as distinctly separate to allow for better reflection. This has been done successfully by independent meetings with the young person with a relevant professional.
Challenges facing SEN families:
Whilst an EHCP is a guidance document for the school or college to provide further support for learners, there have been notable variations across different schools nationally, which will reflect the situation within the county. This variation often is one of the leading reasons parents are dissatisfied with the EHCP and, importantly, is where the conversations need to be open and transparent with what the schools can supply, compared to what the child and parents want (Sales and Vincent, 2018). Research by Sales and Vincent (2018) also pointed out that whilst there are certainly challenges facing learners due to the EHCP elements, further training needs in teaching staff as learners progress further through relevant courses and into work.
What a Good Plan does:
The vast majority of plans offer a tool for young people to engage with their peers and the educational system with the support needed to tackle the different barriers they face. That is why good plans are focused on the aspirations and views of both the family and young person. This gives the schools and providers goals to work towards to identify the strategies to help support the learners transitioning to different levels or goals they are striving towards. The long term focus should always be on allowing them to succeed and bringing career support and the local authority into the discussion. Conversations should be had around what all parties want to achieve. The learner can be supported by identifying barriers that may prevent them from reaching their goal and opportunities for alternative routes or solutions to these challenges. The other important step is the accountability facing the individuals involved in recognising what they are responsible for in the process, allowing them to succeed with the resources they need. In rural villages, whilst SEN, provisions can be provided at schools. Having family hubs where the resources come to the parents and families offering this contact point for the changing needs of the young person and offering the opportunity for consistency of a contact point as they grow into young adults.
What I am calling for:
A review of the process that allows for meetings between learning support, teaching staff and families. Whilst also providing an additional meeting with the individual learner to make the process more inclusive to their targets.
A goal setting plan for the learners is to ensure that the learner’s needs are met, and they are supported to achieve their goals and not just meet their provisions.
Better guidance for Academies, Families, Schools, and Trusts so that the process is easily referenced and supported. Although there is some fantastic support already out there, this must be uniformed and equitable.
Final Remarks:
The EHCP process and challenges facing our young people were just one of the reasons that brought me into politics. As a teacher, more support is needed for families going through this process. It is my view that this also disproportionately affects those in rural villages, such as those in the Cosford division (Narayan and Patnaik, 2020). So whilst this is a problem I have seen whilst teaching in both urban and rural areas, it is a cause I want to continue to push for improvements in. That is why I am calling for your support on the 6th of May as your Conservative County Council Candidate.
https://www.tes.com/news/everything-you-need-know-about-ehcps
https://councilfordisabledchildren.org.uk/sites/default/files/field/attachemnt/EHCP%20Exemplar%20Guide%202017.pdf
Sales, N. and Vincent, K., 2018. Strengths and limitations of the Education, Health and Care plan process from a range of professional and family perspectives. British Journal of Special Education, [online] 45(1), pp.61-80. Available at: <https://nasenjournals.onlinelibrary.wiley.com/doi/full/10.1111/1467-8578.12202> [Accessed 25 April 2021].
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/695100/Education_Health_and_Care_plans_-_a_qualitative_investigation.pdf
https://www.thecommunicationtrust.org.uk/media/362437/ctc-8-education_healthcareplans.pdf
Narayan, J. and Patnaik, N., 2020. Inclusive and Special Education Services in Rural Settings. Oxford Research Encyclopedia of Education,.
Resources for families needing support:
https://www.autism.org.uk/advice-and-guidance/topics/education/extra-help-at-school/england/ehc-assessment
https://www.ipsea.org.uk/pages/category/education-health-and-care-plans
https://www.valuingminds.com/education-health-care-plans-ehcp/
https://www.sen-help.org.uk/the-system/ehc-plans/
Higher Education during Lockdown
How can we make sure that our learners have their needs met and that we make sure that the higher education institutions are a sanctuary for the next generation? Not one which causes an increased in financial pressures and stress on the next generation.
From the start of the UK lockdowns, we have seen the impact that the changes to our everyday lives have on our younger generation. Now we have a light at the end of the tunnel with our vaccination program, giving us a sense of light at the end of the tunnel. Before we get to this point, we need to recognise the impacts this unprecedented time has had. Like other sectors, universities have tried to adapt to this different world, but, in the process, have had a terrible impact on a generation. Now, whilst calls for partial refunds of tuition fees have been made mainly because of the change to the delivery of taught content, most of these are tied in with the experience.
During the pandemic, a university cannot replicate the feel and broader experience of physical campus life. However, whilst I empathise with learners on this point and when I think back to my own experiences at university and how different this would be in a virtual sense. I agree that reducing the fees to that of the Open University would be a suitable adjustment. Some universities are likely to argue that their name is expected to carry more weight than online universities' comparable course. Yet whilst for physical universities and online universities share different ranks in the league table. The only university that could argue for higher fees is the likes of UCL ranking in the top 10 nationally and online. This is also why universities' long-term ranking needs to be reflected in their costs, needs to be differentiated not remaining as they currently are. This is not likely to change in time to correct this problem though
Now I am calling for changes to be made as there is undoubtedly a justification. However, if the learners are being provided with the same standard of lesson delivery or as close as reasonably practical, the tuition fees may not be the place to target. Now, why do I say this?
The tuition fees are linked to the course content, course delivery and assessments. On the other hand, the maintenance loan pays for accommodation, which is related more to the learners' experience. If the learner was told whether they would be facing the possibility of online learning, they might have chosen the course. Still, they would of likely preferred different accommodation or facilities, choosing private rent or staying at home.
Now using the Office for Students guidelines: the universities are expected to provide access to resources and facilities for the learners, which is why university accommodation has the exception of having accommodation open and continuing to charge learners. As with my suggestion above for a tuition fee discount as the government has stated, unless the university has informed you about "that you should return for in-person teaching", you should stay at home. Therefore, the cost of this should be on the university as it would be unreasonable to expect students that should stay at home to pay for the use of multiple dwellings. Equally, additional restrictions within "flats" should not be further impeded. Although the government has issued further guidance, it does not state that households should also be limited, which is what the flat student bubble should be classified as.
In my view, to summarise the current situation suitably justifies a reduction in tuition fees to that of the Open University's likes at £6000. This money should go to the student as a rebate or grant. If it is refunded to student finance directly, it will both cause an increased cost due to adjusting the student finance system and have no practical benefit to the learner. It should be treated more similarly to the hardship funds which most universities have set up to help those in financial difficulties. In terms of their accommodation, it is my view for the lockdown duration, and their accommodation cost should be frozen. Until the "experience" can be returned to a sense of normalcy, a discount could also be offered not for a full reduction but to recognise the learners' change in circumstances.
https://www.thecompleteuniversityguide.co.uk/league-tables/rankings
https://www.distancelearningportal.com/articles/294/10-top-uk-universities-ideal-for-distance-learning.html
https://www.independent.co.uk/news/education/education-news/coronavirus-university-tuition-fees-refund-b1724308.html
https://officeforstudents.org.uk/for-students/student-guide-to-coronavirus/returning-to-university-in-2021/
https://www.universityworldnews.com/post.php?story=2020081313184272
https://www.mind.org.uk/information-support/coronavirus/student-mental-health-during-coronavirus/