A Report on Tuition Fees

By: Asaad M Ibrahim ID: H00114543 November 2011

Abstract:

This report requested by Dr. Valerie Dickie - economics lecturer on October 2011. The aim of study on Tuition Fees (TFs) is an attempt to understand factors that intervene in establishing and financing the level of fees.

Contents

No 1 2 3 4 5 6 7 8 9 Summary Introduction Fees in early periods

Title

Page 3 3 3 3 4 4 5 5 5
6 6 7 7

Change in tuition fees in professional programmes Factors affect accessibility and demand of high education Sources of finance/ cost to (institutes and students) Conclusion Recommendations References list
Table (1): Tuition Fees For Professional Programmes in UK in year 2009/2010 Figure (1): Tuition Fees For Professional Programmes in UK in year 2009/2010 Table (2) Student Enrolled in HE in UK from 2005/2006 to 2009/2010 Figure (2) Student Enrolled in HE in UK from 2005/2006 to 2009/2010

10 Appendices:

1: Summary:

This report shows factors that affect in accessibility to HE, change in the level of TF, and HE finance.
Formal recommendations result through the study:

1) Historical change in TF relative to inflation, costs, and students finance. 2) Accessibility to HE affected by: student finance, opportunity cost (alternatives), and fees level. 3) We need more research and understanding in TFs to develop successful accessibility to HE.
2: Introduction:

Tuition fees analysis involves first historical background, change in fees for programmes. Second important meanings: Accessibility, Demand for HE. Finally, show the resources of finance/cost to institutions & students. Following these findings, conclusions recommendations to show how TF might be controlled.
3: TF in early periods:

In earlier years universities respond to shortage in finance by rising TF. In 1980s TF is 9,000 because universities with low support. In 1998 TF fall around 1,000 because of falling in costs and increasing support [A. Fazackerley, And Chant, J. (2010)]. In 2004 TF raised to 3,000 to allow universities to cover costs; grants for living expenses and loan schemes are developed to help students. In 2010 TF contribution to total revenue per student has raised to 7,000 [A. Fazackerley, And Chant, J. (2010)]. In long run UK universities faced by uncertain financial support and inflation, and need to increasing TF or to decreasing teaching staff (8:6 students to teachers in 1976 to 16:4 in 2007) [AUT RESEARCH, (2005)]
4: Change in TF in programmes

Tuition fees differentiate for professional programmes in different universities because of education costs, region, quality, technology, taste. Also its higher for overseas than UK/EU students, because of increasing demand for UK HE globally (see figure1). As the result of increasing accessibility of students to professional programmes TF has increase. From table (1) TF for business and

management is higher on average from all other programmes because its important for human needs.
5: Factors affect accessibility and demand for high education

Factors that influence accessibility to HE can be categorized to (legibility, motivation, and availability). Financial barriers to HE, TF and other academic expenses, and students motivation for further study all effect enrolment decision. Accessibility to HE increasing by rise in students financial assistance (aid programmes, loans, grants, scholarships, bursaries). Family incomes effect enrolment decision and probability of pursue HE. Other factors include (alternatives available, impact of fees or expected return, social factors, geographical area, information, quality, diversity of programme, and enrolment decision). In table (2) student enrolled in HE increasing rapidly, doubling of number enrolled lead to sharp increasing in universities costs which covered by increasing Gov. Assistance or additional TF. Figure (2) show that UK students are more than (EU and non EU) also number access to undergraduate 4 times postgraduate, this indicates more opportunities of employment or high cost for postgraduate!. We can represent education as consumption and investment. It can be satisfaction or enjoyment, better employment in job choices and financial return. Demand for HE depends in its price, family income, taste or preference for education, investment in universities depends in expected return after graduation.
6: Sources of finance/cost:

Of all expenses students incurs TF is greatest one, its major total expenditures. Other costs include (food, housing, academic supply, transportation ... ect). Family income determines ability to contribute in TF. Students aid respond to change in TF and other costs. Total income for universities increased from 12 billion in 1999 to 23 billion in 2007 [A. Fazackerley, And Chant, J. (2010)]. Total revenue depends partly on TF as number of students increase. Universities are financed by (Tuition fees, endowment funds, Gov. Grants (major source), research income, and investments).

Costs for universities include (expenditure for TF, books, supplies, depreciation, and academic items plus the cost of forgone).
7: Conclusion:

1) The level of tuition fees change in long run due to: Inflation, operating and education costs, and family incomes. 2) At the same time there are differences between programmes and universities in UK which also affect in TFs. 3) Accessibility affected by (alternatives available, impact of fees, family income, and enrolment decision). 4) Universities financed through (TF revenue, government grants, researches, investments, and other income). 5) Finance to students includes (loans, endowments, families, employment, government aid, bursaries, and scholarships).
8: Recommendations

Several recommendations may result: I) Government has the obligation to develop and ensure suitable (inflation rate, educating costs, and family income). II) To develop successful accessibility to HE & TF we need better understanding of factors that influence these issues. III) Accessibility to HE can be increased by: suitable level of TF & inflation, increasing universities & students financial assistance and taste! .
9: References list
[1] A. Fazackerley, And Chant, J. (2010), More Fees Please? The future of university fees for undergraduate students, Policy Exchange, Clutha House, London. [2] ASSOCIATION OF UNIVERSITY TEACHERS (October 2005), Packing them in - The student-to-staff ratio in UK higher education, AUT RESEARCH. [3] guardian.co.uk/education, (Tuesday 15 February 2011). [4] Higher Education Statistics Agency UK, (2010). http://www.hesa.ac.uk/dox/pressOffice/sfr153/SFR153_table_1.pdf

10: Appendices:

Table(1):Tuition Fees For Professional Programmes in UK in year 2009/2010

Medicine Engineering
UK/EU Overseas UK/EU

Law
Overseas

Art and Design

UK/EU Overseas

Business and Management

UK/EU Overseas

No

Name of Institution

UK/EU

Overseas

1 2 3 4 5 6 7 8 9 10

Aberdeen Birmingham Edinburgh London

Imperial College

Leicester Glasgow Brighton Leeds Oxford

3,400 4,350 4,850 6,777 3,390 5,575 3,900 3,780 3,390 6,945

11,500 12,800 14,750 13,992 25,200 12,100 12,950 11,340 13,300 15,450

3,400 5,700 5,590 4,085 3,390 5,575 3,400 3,780 6,200 3,466

11,500 13,950 13,600 9,300 18,100 12,100 11,000 11,340 12,850 14,000

3,400 4,350 4,850 6,192 5,575 3,900 6,500 3,390 6,945

9,250 9,880 11,250 13,992 12,000 9,800 10,500 10,300 13,750

3,400 4,675 5,100 3,995 7,500 5,110 3,400 3,780 3,390 6,185

10,500 9,550 13,482 11,900 12,450 10,250 10,800 9,540 10,300 9,950

7,675 10,775 13,725 6,777 19,250 6,866 7,950 6,250 10,195 10,016

10,600 13,540 16,925 12,380 29,700 11,988 13,400 11,395 15,400 13,815

Source: guardian, (15 February 2011)

Figure 1: Tuition Fees For Professional Programmes in UK in year 2009/2010

Table (2): Student Enrolled in HE in UK from 2005/2006 to 2009/2010

Postgraduate
year
UK Other EU Non EU UK

Undergraduate
Other EU Non EU

2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Total

343,900 343,825 333,655 353,430 374,310

40,895 41,245 42,285 44,285 47,580

107,845 117,675 125,200 139,100 156,820

1,630,300 1,634,890 1,630,660 1,673,655 1,713,310

59,095 64,165 69,865 73,375 77,465

99,210 102,900 104,445 112,215 123,940

1,749,120 216,290 646,640 8,282,815 343,965 542,710

Source: Higher Education Statistics Agency - UK , (2010)

Figure 2: Student Enrolled in HE in UK from 2005/2006 to 2009/2010