Crisis in Education

Ever since the collapse of Lehman Brothers, I predicted a similar crisis in Higher Education in this country. My prediction turns out to be correct. The recent student demonstrations against the increase in university tuition fees in London and other cities across the UK in November and December of 2010 were just the beginnings of the crisis. On the 19th of January 2011, college students demonstrated again in front of the houses of parliament in Westminster against the scrapping of Education Maintenance Allowance. Further demonstrations against tuition fees increases and the scrapping of EMA have been arranged for later this month and March of this year. With both the government and students determined not to yield, brace yourselves for a thorny ride. It will get much worse before it gets better. It has already dawned on clever students that demonstrating from here to Herefordshire will not change a thing. We are in a recession, the current higher education funding is unsustainable and national debt is staggering. The government had to do something. This is the time for students – just like the rest of us - to rise to the huge challenges that lie ahead. I can see something similar to the 80’s poll tax riots on the way. It is hard not to be convinced of the impending crisis in education if you have been following the build-up and are equipped with good judgement.

On the 15th of September 2008, Lehman Brothers – one of the world’s biggest investment banks – filed for Bankruptcy. Apparently they [Lehman Brothers] made a lot of losses in the sub-prime mortgage market. That brought about the end of a global financial powerhouse that was in business for over 150 years. For an investment bank so large to collapse so spectacularly highlighted for many the severity of the credit crisis. Severe credit crisis inevitably lead to economic recessions and governments react to economic recessions by making fiscal and monetary policy adjustments. In the UK, in response to the global recession and the huge national dept, the last labour government in its final Pre-Budget Report on the 9th of December 2010 made some fiscal policy adjustments. VAT was increased from 17.5% to 20% which took effect in January 2011 and National Insurance Contributions were increased by a further 0.5% to take effect in April 2011. In November 2009 they [the last labour administration] also commissioned The Independent Review of Higher Education Funding and Student Finance to make recommendations on the future of fees policy and financial support in Higher Education for undergraduate and postgraduate students. The key recommendation of the report - headed by Lord Brown and published on the 12th of October 2010 – was that for education in this country to remain competitive and sustainable, the current £3,000 cap on university tuition fees be removed and individual universities should have the freedom to charge tuition as they saw fit. It is believed that universities will charge anything between £7,000 and £11,000 per year as from 2012. The report also recommended that repayment of any student loans after graduation only begin upon graduates earning salaries of over £21,000 a year - an increase from the current £15,000. On June the 22nd 2010, George Osborne - in his first budget as Chancellor of the Exchequer under the new coalition government - announced further fiscal adjustments. He announced a series of government spending cuts. The sectors affected by these cuts included Education, Health Care, Defence and Local Government. For Education it meant the reduction of the number of spaces available on certain courses and/or discontinuation of certain unpopular/unpractical courses all together at some institutions. Also it meant that as from January 2011, new college students no longer got the weekly EMA - Education Maintenance Allowance – which was between £10 and £30 per week.

The implications of all these cuts for the average student are huge. It will bring about changes in higher education of which many students are still not prepared for. That is the other part of the crisis. The demonstrations are just the beginnings. The economic boom times are definitely well and truly over. From 1997 to 2006, with the exception of the dot com bubble bursting in late 2000 and the 9/11 terrorist attacks in 2001 - which slowed down the economy briefly - the UK economy was in a continuous and steady boom. According to New Labour, “Things could only get better”. More and more money was poured into higher education; more and more students were attending university. By 2007, there were already too many unemployed graduates. Unemployed not because of a recession but because there simply were too many graduates for even the boom-time economy to absorb. By 2008, things changed. A global credit crisis hit. A global recession followed. Fiscal and Monetary policies were adjusted. Public spending cuts were announced. Inevitable public sector redundancies lie ahead. The higher education tuition fees cap was removed and universities are set to charge as they see fit. Come 2012, tuition fees will be between £7,000 and £11,000. Student debt upon graduation will rise from its current average of £20,000 to £30,000 in 2009-2010 to a new average of £30,000 to £50,000 as from 2013 onwards. And there is more. College and University student numbers have been increasing yearly since 1997. University student numbers might dip come 2012 but that is not likely to be that significant as loans will be made available to cover tuition fees. Despite the severe recession and higher tuition fees, more and more school leavers are still opting to go to university - most probably because of it. Everybody seeks the good life and all students have been made to believe a university degree is the answer. The European Union is now a 27 member-state entity that offers citizens the freedom to travel, work, study and settle anywhere within the union. London is still a top international city, English is still the global language and the UK is doing better than many EU states like Greece, Spain and Ireland. These facts make the UK very attractive and draws many students to the UK especially London. In addition to EU students, there are Non-EU students as well. Many end up working and living in the UK after graduation. It is within this chaotic framework that the average student is supposed to do his/her A levels, obtains good enough grades, obtain a place at University, graduate, seek and secure an ideal graduate job – stress free. That is the crisis.

If competition for university places were as bad as the reports told us in 2009-2010, competition for graduate jobs were even worse. With the private and public sectors both downsizing, with huge numbers of graduates chasing few jobs, with the country going through the worst economic recession since the great depression, with the cost of living rising year on year, with college students no longer entitled to EMA, with university tuition fees set to increase to £9,000 per annum come 2012, with average student debt set to climb to between £30,000 and £50,000 upon graduation, with graduate unemployment at an all-time high, with morale amongst fresh graduates at an all-time low the average student should think long and hard before deciding to go to university.

In fact the decision to go to university should now be a decision to fully commit to the expensive investment in education. It is a decision to fully commit to hard work to make a return on that expensive investment in education. It is a decision that the education will and must pay off in the end. It is a decision to make oneself employable despite severe competition. When I went to university, it was assumed there will be a job afterwards. Today, to get a job, you must either be lucky or exceptionally good. Those hoping on luck need not apply. In other words, it is no longer an insurance policy, but an assurance policy. That simply is and should now become the basic requirement for those willing to attend university. There is no point attending university to see what will happen or wish a suitable job will materialize. It is way too expensive to wish for a good return. It has to be the absolute driving and burning ambition. It is either a student is willing to completely commit or not bother at all.

In a very weird sense, this crisis is good. As with every crisis, it can be an opportunity to make any system better. For sometime now, there has been concern about the quality of education in this country. There has been concern that A Levels and GCSEs are dropping in standards. I totally agree. Comparing examination papers - say Pure Mathematics - of the years 1977 and 2007 will reveal this fact even to the blind. Graduate employers have been saying this for years. This crisis should be an opportunity for reform. Higher education should be incentivized either via scholarships or otherwise. Instead of a flat system of grants and loans, universities especially in inner cities have do offer scholarships to the best performing students.

In the final analysis, this crisis will hit students hard. No amount of student protests will prevent the government cuts or the increase in tuition fees. Upon graduation, the struggle for employment will ensue. These times present real challenges for the average student. The onus lies wholly and ultimately with the student to demonstrate his or her fitness to succeed despite the crisis.





Mr Jideofo Obianyido is a private A Level Mathematics Tutor and a student coach. His new book “EDUCATION – A message to young and ambitious students” is due in April 2011. He lives in London and can be contacted via Jideofo.Obianyido@gmail.com