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7TH OCT 2008
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Current And Future Student Debt Levels
This year students were faced with higher tuition fees
Previously full time students were required to contribute only £1125 a year in tuition fees.
Currently students can be charged by universities up to £3’000 per year in tuition fees. More than double of previous years and will be increased in 2007/2008 to £3070 a year, leading to an instant increase in the student debt burden.
In addition the tuition fee is set for review in 2009 and could rise to as much as £5000 (Prof Thomas in an article in the guardian Wednesday October 4, 2006)
NatWest has predicted a level of student debt by 2010 of more than £30’000 more than double the official current figure of around £12’000 for current students
So students will be facing ever increasing levels of debt and this may have already detered students from applying for university, with a 3.5% drop in the number of applicants to UK universities.
(figures related to student loans as reported in document “Student Loans and the question of debt published by the Department for Education and Skills” unless other wise stated)
The SDRS Concept
The simple idea behind the SRDS is to harness the spending power of the immediate family and therefore the community to help reduce an individual students debt by up to 50%
The SDRS is based around a similar concept to that of already existing loyalty schemes and discount cards that both students and their families are both comfortable and familiar with.
This we call the Student Debt Reduction Card (SDRC). The SDRC however has a very important difference. Instead of the students and their family receiving a discount or points with their purchases. On the production of an SDRC an amount equivalent to the current discount offered by the retailer or a percentage of the purchase value is transferred to the students SDRS Bank Account.
The Student will be able to use the balance of their SDRS Bank Account against their Debt after they graduate and leave Higher Education or be given the option to extend the SDRS further until the debt is cleared.
Alongside the contributions made to individual students it is hoped that the government will match the total funding raised by the SDRS each year to be awarded to be made available to universities in the form of scholarship schemes and or bursaries to aid those students that are not in a financial position to go to university.
Debt Repayment
The rise in tuition fees has been offset by the fact students don’t pay anything until their earnings reach £15’000 a year. An increase over the previous lower limit of £12’000. The repayment period has been extended to lower weekly repayments and is now an average of 13 years.
So students will have more debt and will be paying it back over a longer period, exposing them to inflation rates for an extended period of time
(figures related to student loans as reported in document “Student Loans and the question of debt published by the Department for Education and Skills” unless other wise stated)
The SDRS Road Map
 Sept 2006
Launch of Student Rep network
The Student Rep Network will enable us to build up awareness of SDRS and other projects through direct contact with the students at university level
Sept 2006Sept 2007
Launch of SDRS Discount Card
The SDRS Discount Card is the initial step towards the full SDRC. It will also allow participating companies the opportunity to collect sample expenditure data before being fully committed to the SDRC without the need for investment in infrastructure to support the SDRC. It will also allow additional time to increase student involvement.
Sept 2006Sept 2008 - 09
Launch of SDRC & Full SDRS Program
Full impementation of the SDRS with backing from UK goverment and other student bodies
Sept 2006Sept 2011 - 12
First Students Recieve SDRS Bank Balance and half thier debt on graduation
Please download our SDRS Info pack by clicking here
Comments about the SDRS can be made here.
Feel free to contact us if you would like more information about the solution.
Related Links
Read Latest SDRS News
SDRS to be discused with Shadow Minister for Higher Education Boris Johnson MP
Provided by The Student Zone (United Kingdom) |
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