New Labor's bill on tuition fees will ensure that students will face the prospect of leaving university with a debt of approximately £15000. Universities will be given leave to increase their tuition fees to around £3000 a year. The reforms which have been announced have been met with mixed responses. University graduates will be liable to pay the tuition fees at a rate of approximately 9% once they begin to earn an income of about £14000 a year. It is likely that about 30% of students will meet the requirements for the complete £1000 grant which will available to lesser privileged families.
[...] This project will analyze why the new bill on tuition fees might affect the amount of education an individual may acquire and hence, determine the amount of human capital they invest in. Workers who pay tuition fees for their schooling are willing to give up potential income today for higher earnings in the future. For example, one might earn a relatively low wage while they attend university or participate in a formal apprenticeship program. However, one would also expect to be rewarded by higher earnings later on as they collect the returns to the educational investment. [...]
[...] Figure 4 Figure 5 Figure 6 Figure 7 Conclusions and Recommendations This project has shown that New Labor's introduction of tuition fee will inevitably lead to reductions in university participation and will thus, lead to income inequalities within the UK, these income disparities may not be seen fully in the short-term, but are sure to become wide spread in the longer term. The most common argument against tuition fees is that it will severely limit educational participation from those students from poorer backgrounds who will not be able to afford the fees or the accompanying debt burden the tuition fee bill will create. [...]
[...] Some critics of New Labor's tuition fee bill have argued that the correct educational policy should be one where there is a specifically designed provision to strengthen Universities financially and to meet additional identified needs. An educational policy where one would see a dramatically curtailed Government interference in the running of Universities by creating a more direct system of funding and removing much of the existing bureaucracy with which the sector has to deal16. Furthermore, some researchers and experts on the subject have suggested that the Labor Government's policy aimed at expanding higher education in the UK is based on two basic principles: that it is necessary for economic prosperity and that it can increase better access to high-paying to jobs for those who are from a low socio-economic background/status. [...]
[...] By the end of this project, the reader will be aware of how students feel about New Labor's tuition fee bill and if the bill will further increase the income inequalities within the UK. The vast majority of raw data obtained during the course of this project were obtained from terminals that give access to detailed data relating to myriad data on all aspects of the economy and particularly those that affect higher education in the UK. At this junction, it should be mentioned that without the explosive growth in computers and computer software the extremely sophisticated statistical models used in this research would have been a tall task. [...]
[...] This analytical result will assist the project in making a conclusion on the how the new bill will affect income inequalities. The variables are actually the frequencies of the responses obtained from the sample students, in regards to the research questions they responded to. All the variables will be inputted into the DataStream statistical software for analysis. It is important to mention at this point that, DataStream will be the primary mode of analysis that this project will be utilizing. [...]
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