Should Higher Education Be Free to Students?

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The topic of funding university education has gained prominence as governments grapple with allocating funds for universities, sparking extensive discussions on the optimal financing approach and the potential for free education.

It is crucial to comprehend the origins of tuition fees. The concept arose from the labour party manifesto in 1997, which placed a strong emphasis on Education as a top priority, famously reiterated by Tony Blair’s repetition of “Education, Education and Education”. Prior to this, the government fully covered tuition fees and provided additional grants.

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Due to insufficient funds, the government was unable to financially support university education, leading universities to independently determine tuition fees through top-up fees. In 1997, the Labour party took office and initially eliminated fees in favor of means-tested maintenance grants. However, after one year, these grants were discontinued and replaced with means-tested fees amounting to £1,000 annually. Subsequently, the higher education bill in 2004 permitted top-up fees of up to £3,000.

The current tuition fee limit, which has been approximately £3,000, is set to be raised even further. According to senior former advisers at the World Bank, certain universities should consider charging up to £20,000 per year. This suggestion stems from the belief of some economists and professors that UK institutions would gain advantages by implementing full fees. By doing so, they would reduce reliance on government funding and generate greater revenue. The additional funds could then be utilized for hiring esteemed academics and offering scholarships to financially disadvantaged students.

There are various justifications for not making education freely accessible. Suggestions have been put forth to “reflect the genuine economic expenses of undergraduate education.” Primarily, British higher education requires income in order to maintain its competitiveness internationally and to deliver the expected standard of education to students. Numerous professors argue that the acquisition of a degree leads to an average increase in lifetime earnings of £160,000 for graduates. Hence, students should contribute a slightly higher amount towards tuition fees as they will benefit from receiving education.

Raising tuition fees can potentially alter the career path of many students, as they will likely receive better instruction and earn a more esteemed degree. Moreover, there is a widespread perception that the education field suffers from inadequate funding and requires additional revenue from alternative channels. Some vice-chancellors propose that students should contribute to the funding, while the National Union of Students (NUS) argues for it to be solely derived from public funds through taxes on wealthy individuals. As a result, the most feasible solution is for students themselves to shoulder the financial responsibility of higher education fees.

Implementing fees for education is seen as a reasonable measure to emphasize the value of education in securing a good job and higher salary. It encourages students to contribute towards their own personal gain and reduces the prevalent dropout rate. Charging for education discourages wasting time and ensures greater dedication, focus, and effort from students. Requiring payment motivates and commits more students, ensuring they study only if they genuinely desire to do so.

Opposition to free education exists as it necessitates funding from a source, and it would be unfair if the burden solely fell on taxpayers who do not benefit from higher education. Students should acknowledge that university admission ought to be merit-based rather than dependent on financial ability. Nevertheless, there are proponents advocating for free higher education, asserting that the government must ensure all citizens have access to university without any financial strain. This approach would provide everyone with an equal opportunity to pursue advanced studies and obtain a degree.

By implementing free education, the need for means testing students eligible for support in further and higher education is eliminated. This ensures greater equality. Furthermore, making higher education free will encourage more people to pursue educational opportunities beyond 16 or 18 years old. Consequently, there will be a reduction in dropouts and individuals from slightly disadvantaged backgrounds with low family income will not face disadvantages. The advantages of university education extend to society as a whole, leading to increased social benefits.

Free education is beneficial in reducing financial burden, particularly in countries like the UK where high debts have become a major issue. Consequently, numerous students are compelled to seek part-time employment while pursuing their studies. The controversy surrounding higher education in universities exemplifies market failure – a situation arising when markets operate without government intervention and fail to allocate resources efficiently. Market failure arises when market outcomes lack economic efficiency.

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