UK Universities argue that “finances will be stretched” in the next few years, as most of them are currently in a deficit. Top UK Universities have requested more funding from the government and specific visas as they may have to depend on international students.
Top UK research universities have released statements detailing the financial struggles of higher education in the country. The Russell Group, an association of twenty-four UK research universities, said in a report last week that by 2030, higher education institutions in the United Kingdom will be forced to “reduce the quality” of their education if the situation remains.
Given the situation, the Russell Group has requested financial assistance from the government, looking to build a “brighter future” for its universities. According to their report, by 2030, they estimate the funding gap for each UK student will be 5,000 pounds (6,200 dollars). In other words, each UK student they take on would create a deficit of 5,000 pounds.
Shitij Kapur, the vice-chancellor of King’s College London, attributed these financial struggles to various financial factors, including the student loan system, in a publication by the university entitled Triangle of sadness. Mr. Kapur claims the UK has the most indebted students of any country in the world, as well as the most students who default on their debt due to low income. These loans are then taken on by the government.
“Over 90 percent of UK graduates take out a loan, with an average debt of around £45,600, Kapur writes. By contrast, about 60 percent of US graduates take out a loan, with an average debt of only $28,400.”
Kapur also mentioned inflation as a major factor, as the value of the pound has fallen since 2012. Tuition fees were set at a maximum of 9,000 pounds a year before grants and scholarships in 2012. They have not increased significantly since then, remaining at 9,250 pounds a year, so the value of universities’ income has plummeted.
According to Kapur and the Universities and Colleges Employers Association (UCEA), 100 out of 144 higher education institutions reported financial deficits in 2021–22, which they attribute to the high costs of sustaining UK students as opposed to international students.
International students pay higher tuition fees, so universities may be forced to prioritize them to maintain their standards, according to Kapur.
“Universities will be forced into doing research only if they can recruit more international students or replace domestic students with international students,” Kapur said.
Domestic and foreign students may be pitted against each other, as universities may be forced to prioritize the latter. Despite this, the number of potential UK students is increasing. “UCAS estimates there will be 38 percent more UK students seeking university places by 2030 than there are today, Kapur said. How does one fund this?”
The Russell Group’s report shows they value international students as a source of income and proposed a visa system.
“Higher Education exports (international students in the UK) are one of the UK’s biggest exports – bringing an annual net benefit of £37.4 billion to the UK economy, the report says. An ambitious new 2030 International Education Strategy along with a supportive visa system […] would help grow the UK’s position as a global Higher Education powerhouse.”
The Russell Group remains optimistic that the situation can be reversed with governmental help.
