Hope for students as recession bites

The credit crunch has hit everyone hard, and with job prospects becoming thinner on the ground as each day passes by, the idea of starting a university degree may seem daunting.

When everywhere you look jobs are being cut left right and centre, it’s easy to think the best idea would be to get your foot on the career ladder as soon as possible.

Already, three quarters of parents are admitting their fears of not being able to afford to fund their children through an expensive university education, according to The Association of Investment Companies' (AIC) annual survey.

The average cost of completing a university degree currently stands at around £13,000, with many families having to make sacrifices in order for their children to get through higher education.

The media are branding this year’s graduates as ‘Generation Crunch’ and ministers are so concerned that they are drawing up a rescue package to help the class of 2009.

Unemployment is on the rise among 18-24 year olds, with over half of the UK’s unemployed predicted to be those under 25 by the end of this year, according to a recent labour market survey.

As if things weren’t hard enough for those beginning their journey on the path of education, getting in to your choice of university has just been made that little bit tougher due to the recent surge in applications from over 21 year olds trying to better themselves in the difficult employment market.

Despite all the doom and gloom, there is light at the end of the tunnel, according to Lynne Condell, student funds manager at Liverpool John Moores University: “The financial situation for students has changed over recent years and parents now are not officially expected to contribute towards their son's or daughter's financial support. It does not mean that they don’t contribute – just that they are not assessed as expecting to contribute.”

This may mean that students whose parents are out of work or on a low income will receive a higher loan amount.
 
Alongside government loans, there is a range of grants and other support available to students. “The level of non-repayable support the student may get is also dependent upon household income, and if this has dropped due to a change in circumstances then a student may qualify for extra assistance,” added Lynn.

Although borrowing money in the shape of student loans will leave students with a debt at the end of their uni life, the recession has also had an effect on the amount of interest that will be charged, according to Emma Bristow, Student Support & Information Officer at the University of Central Lancashire. “The interest charged on the loans isn't as high - it dropped with the Bank of England cuts,” she said.

Emma also highlights other possible sources of support that students could be eligible for. She said: “Other than the main funding packages, some students can qualify for additional state benefits, for example, housing benefits.”

Liverpool Students Union offers a range of advice and information on its website, including student funding, money-saving tips, preparing a budget planner and dealing with debt.

Edward Symondson, President of LSU, said: “If you really want to go to university you shouldn’t be put off by the current financial situation. If parents are likely to struggle supporting their son or daughter there are bursaries as well as loans that could help you out.”

Edward also believes that preparation before you come to university is essential: “Students should always do their research beforehand. There are housing benefits and other financial aid that may help you in terms of every day living, and you should always look for cheaper options.”