Tag Archives: student finance

What will happen to British students in the Netherlands if/when Brexit arrives?

calm-down

How do you say “Keep Calm and Carry On” in Dutch?

I was in the Netherlands last week visiting a variety of universities throughout the country. While it was hugely encouraging to see that most universities have increased their number of British enrollments this year, there were certainly signs that one or two had dropped out, citing Brexit as a major concern.

When we are trying to advise students of the impact of Brexit on tuition fees, I think we are more or less clear for every country except the Netherlands. This is the main country where British students benefit from direct subsidy in their host country. We have asked many universities what measures they can put in place to reassure British students in the event that the vote to leave the European Union is actually implemented. While it still isn’t possible for anyone to say what will happen (and expect this state of affairs to continue at least until Article 50 is implemented), I think we can now have a good stab at outlining what will not happen. We can also perhaps point to the worst-case scenario, which from an English point of view may not look so bad after all.

Will students who started university this year be guaranteed EU fees for the duration of their studies on the basis that they have started before any change has been announced? No. Universities have taken legal advice on this and it cannot be done as it would result in discrimination against other non-EU students. Also, universities would be foregoing revenue from central government if it were even legal to do this. Hence, there is absolutely no chance of this happening without the Dutch Ministry of Education taking the lead. There is no suggestion that this will happen. Some in the UK have imagined this might be a possibility because British universities have said they will honour this commitment to their existing EU students (and, more importantly perhaps, the Student Loan Company has said it will do so, too). British universities enjoy greater autonomy when setting fees and, with the exception of STEM subjects, don’t receive direct government subsidy since the introduction of £9,000 fees. For these reasons, this is not a like-for-like comparison.

Could universities decide to charge British students a lower amount than full, non-EU fees? This falls into the same discriminatory problem as the previous scenario. Effectively, this would amount to a blanket scholarship for British students on the grounds that they are British. This isn’t legal and couldn’t be achieved. British students could be able to apply for scholarships offered to non-EU students but they would have no automatic right to them.

Will British students still be able to access tuition fee loans or maintenance loans if we leave the EU? No. This would also end overnight.

To maintain the same fees and access to student finance in the Netherlands would require the UK’s continuing membership of the EU, joining the EEA, or negotiating a separate agreement that would allow for reciprocity. All of these would probably require the maintenance of freedom of movement. As a result, I am not holding my breath.

So, if we are to leave, what would this mean for British students?

Well, the good news is that Dutch tuition fees for international students are not that high anyway. You would be looking at around €8,000 per year for arts and humanities courses, around €12,000 for sciences. The University Colleges would be around €10,000 a year. All of these are comparable with English tuition fees which will resume their own upward journey from September 2017. We have never encouraged students to go to The Netherlands for primarily financial reasons; it has only ever been a nice additional bonus. However, we can accept that this might make it difficult for some British students to afford.

The other major change would affect the rights of British students to live and work in the Netherlands. While there is already talk of making British citizens pay to visit the rest of the EU, we don’t know if this will have an impact on students. We can’t say for certain what the impact would be on British students’ right to work, either. However, the standard allowance for non-EU international students is 10 hours a week, meaning that the maximum earning potential could be seriously restricted.

We will obviously aim to update this information as we know more.

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Filed under Brexit, Uncategorized

Alternative ways to get a degree

Last week we appeared on BBC Radio 4’s Money Box programme to discuss alternative ways of funding a degree. While we were invited to speak about possibilities for British students abroad, other guests focussed on higher apprenticeships and the latest information on the cost of studying in England.

You can download the entire broadcast here.

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Filed under International Higher Education, Scholarships and financial aid, Uncategorized

Government goes back on its word regarding tuition loan repayment threshold

About four years ago when the new fees regime and related changes to student finance were being announced we took part in a BBC Radio 4 Money Box special edition. One of the other guests was Martin Lewis, money saving expert and, at the time, front man for the government’s campaign to inform the public about the forthcoming changes.

I argued that the changes to student finance were one thing but the payment terms that students would enjoy for the thirty year period after graduation were quite another. It seems that the government has taken the first opportunity it could to go back on its word and amend the terms of repayment and they have backdated these changes to affect everyone who has one of the new loans, even those who have already graduated. Mr Lewis has already made his opinion clear on this act of deception.

The changes announced (that the £21,000 starting point for repayments will not rise in line with inflation) will not have an immediate impact but over the lifetime of most loans it is estimated that the average student will repay an additional £6,000 if the threshold is not increased in the future. This will particularly penalise median earners who are making some repayments but cannot make a significant reduction in the capital of their loan. As no student has yet made any repayment under the new regime I can only speculate that projections for rates of repayment are lower than the worst estimates currently in circulation and the Chancellor is just getting in early with this amendment. How long will it be before 9% of earnings over the threshold becomes 10% or more?

I don’t want this blog to be about the bad hand being dealt English students right now. You can find far better analysis of this elsewhere. However, there can be no doubt that the best advice we can offer students considering a Bachelor’s degree here: have you thought seriously about leaving the country?

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Filed under Student Mobility, study abroad advice, Study Abroad Facts, Uncategorized

Portable Student Finance for British Students? Probably still a pipe dream.

I think we can put this down to wishful thinking but it appears that loans for British students going abroad were very much part of David Willetts’ plan when he was minister responsible for higher education.

Many countries invest in their future talent to come to the United Kingdom for the purposes of higher education. Speaking at the British Council’s  “Going Global” conference in London earlier this week, Willetts suggested that he would have been delighted to offer reciprocal arrangements for British students.

There is absolutely no doubt in my mind that the ability to borrow money from Student Finance England would be an absolute game-changer for British students. The relative cost of higher education is of little importance when choosing where to study but the ability to be able to afford it is absolutely essential. In short, it doesn’t matter that education in Denmark is free if you cannot get a loan to cover living costs – many students will be shut out.

We have often been asked by journalists and academics in northern European countries why students from lower income families aren’t leaving the UK in droves. The answer has always been that you still need to have money behind you to be able to benefit from a lower cost opportunity. Students without the financial wherewithal are not only unable to take advantage of these options overseas but also unsubtly reminded of the unfairness of British university tuition fees. I accept my analysis ignores the availability of scholarships and bursaries in the UK but evidence that these are reaching the right students is hardly conclusive.

Earlier in the Going Global conference, the new HE minister, Jo Johnson, spoke passionately about his time studying at Universite Libre de Bruxelles and INSEAD in France. Will he now take steps to ensure that any student in the United Kingdom can benefit from similar educational experience? I am not holding my breath (I doubt UK university vice chancellors will be happy to see funding follow the student out of the country…) but I will be asking the question.

You can read the original article on The PIE News website.

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Filed under Higher Education, Student Mobility