War of the Worlds: Student Finance Versus Life
Its a worrying time for current and
prospective students. Figures from the Prudential,
show that a third of UK university students have considered
abandoning their studies due to the financial strain
they have encountered. It is not surprising that many
prospective students are finding the need to seriously
think through the merits of going to university. With
the increase in course fees, alongside decreases in
government financial support, the current crop of
graduates can expect huge debts (currently averaging
over 13,000) when they enter the employment market,
which they hope will reward them with a highly paid
job.
However, as more students get pushed
on to the higher education production line and undertake
degrees, the once elitist qualification becomes devalued.
Suddenly employers find themselves surrounded by graduates
of ambiguous quality. Prestigious highly-paid careers
are rare these days and graduates find themselves
increasingly under pressure to jump through a number
of hoops, with many interviews relying on an individuals
ability to sell himself, rather than the basis of
the academic work.
Students need to take responsibility
for their own finances, while the government seeks
our recognition of its actions (educating the unemployed
is good for the books and votes), without the state
taking on responsibility (its an investment in your
own future). Too many want to bury their heads in
the sand and wait for a lottery win to make it all
better. With over one trillion pounds of personal
debt in the UK, students need to realise that the,
"it could be you!" they pray for, is actually an "it
is you in debt" with trapped wind more likely than
wind-fall.
Part of the problem is hopeful expectation
(alias denial), part is a fear of controlling your
own personal finances (alias apathy), and part is
a lack of knowledge (alias ignorance). The first one
is difficult, and needs to be overcome by the individual.
The other two however can both be overcome by looking
for help. Sources of information need to be made available,
actively promoted and sought out by consumers. Its
not like the information isnt there there are plenty
of financial product comparison sites loaded with
information (and pictures): www.moneyn
et.co.uk for a start, or www.moneys
avingsexpert.com The Financial
Services Authority has its own finance help information
for consumers. As the saying goes, "Seek and you shall
find". It may be a hard lesson, but it is one that
we must all currently embrace.
Richard works in Edinburgh for a media
company, occasionally writing for the personal finance
blog Cashzilla,
and drinking too much coffee.
