Top universities 'admitting fewer state school students'

Figures show the vast majority of top research institutions turned more places over to pupils from independent schools in 2010/11 and fell dramatically short of Government admission targets.

Amid an unprecedented scramble for degree courses, it emerged that around two-thirds of universities belonging to the elite Russell Group recruited proportionally fewer state school students.

This includes the universities of Bristol, Cambridge, Imperial College, the London School of Economics and University College London.

At Oxford, Cambridge and Durham, fewer than six-in-10 places went to state school students.

Alternative figures showed just over half of top universities also recruited fewer pupils from the very poorest families.

The disclosure will come as a blow to the Government which has piled pressure on the most selective universities to create a more diverse student body.

Last year, Nick Clegg warned that top institutions had a duty to ensure “British society is better reflected” in their admissions to justify state funding.

But the Russell Group defended the figures, insisting that large numbers of well-qualified students from state schools failed to apply.

Wendy Piatt, director general, said: “These statistics are a reminder of the particular challenges faced by Russell Group universities as we work hard to increase fair access. Every year we pump millions of pounds into our outreach work such as summer schools and access schemes to encourage poorer students to apply and attend our universities.

“But we can only admit students who apply and who have the right grades in the right subjects.”

According to the Higher Education Statistics Agency, some 88.7 per cent of university places were awarded to pupils from state schools last year, down slightly on 88.8 per cent a year earlier.

It coincided with a record rise in the number of students applying to university in 2010.

Figures show that fewer state school students were admitted by 16 out of 24 Russell Group universities. The group expanded from 20 to 24 earlier this month.

Those witnessing a drop were Birmingham, Bristol, Cambridge, Exeter, Imperial College, King's College, Leeds, the LSE, Manchester, Newcastle, Southampton, UCL, York, Cardiff, Glasgow and Queen's University Belfast.

The propotion of state school students at Birmingham dropped from 77.6 to 76.1 per cent. It meant 3,235 were admitted to the university last year compared with 3,420 a year earlier.

The LSE turned over 70.8 per cent of places to state pupils in 2009/10 compared with 66.5 per cent 12 months later. It represented a drop from 515 to 445. Cambridge fell from 59.3 to 59 per cent, taking 1,560 state school pupils, down by 30.

Only Oxford, Durham, Edinburgh, Nottingham, Queen Mary College and Warwick saw their proportion of state school students rise, while Sheffield and Liverpool remained unchanged.

Statistics also reveal the number of universities that are failing to meet centrally-set "benchmarks". Targets cover areas such as how many state school pupils are admitted and numbers from the poorest homes.

The statistics show that 51 universities – around 41 per cent – failed to meet their benchmarks for recruiting state school pupils. This included 16 out of 24 Russell Group institutions.

From next year, universities could be stripped of the power to charge up to £9,000 in tuition fees for consistently falling short of admission targets.

A spokesman for the Department for Business, Innovation and Skills said: "Demand for higher education remains strong, but we want to ensure that background is not a barrier to university. Our reforms expect institutions to do more to attract applicants from disadvantaged backgrounds.”

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Universities say students may face earlier loan payback

Graduates could pay higher interest rates on their student loans and pay them back earlier to help avert a funding crisis, a report says.

The Russell Group of top universities says it faces a £1.1bn black-hole in its finances by 2012-13.

The claims are in its submission to England's official review of student finance and fees.

The National Union of Students said students already paid "more than their fair share".

President-elect Aaron Porter said: "These are elite universities that are simply turning around to students saying they have to foot the bill for cuts in government funding - but they should have anticipated this and thought about their provision".

The Russell Group represents the 20 most research-intensive universities in the UK, and includes the likes of Oxford, Cambridge and University College London.

It says that without extra income its members will be forced to make significant cut-backs.

The group has suggested the £900m-worth of cuts planned by the Labour government for the next three years would bring the UK's higher education sector to its knees.

But it kept its submission to the independent review of higher education funding and student finance secret until now.

The review will report to the government in the autumn.

Under-investment
Although this submission stops short of suggesting higher tuition fees for UK students, it appears to indicate that other solutions may not be fully workable.

It also argues that one way to make the student finance system more sustainable would be to charge students a real rate of interest on their loans.

This could be linked to the cost of government's overall cost of borrowing. It also suggests the threshold at which students start paying loans back could be lowered from the present £15,000.

The Russell Group says: "The lack of a real rate of interest on student loans" is a "subsidy which imposes high costs on the Government, and which exceeds the requirements of ensuring fair access to higher education".

It is set to make a number of submissions to the review in the next few weeks.

The group says variable tuition fees have enabled top universities to maintain high standards and widen access.

Future cuts
This funding, together with the package of loans covering the fees - now at £3,225 a year - has allowed many more students to attend universities, it says.

It adds that much of the increased funding has been used by universities to compensate for a backlog of under-investment.

But it also claims the financial sustainability of the sector as a whole is severely at risk, with universities facing rising cost pressures, particularly related to salaries and pensions.

It says research intensive universities face particular pressures because of low staff-student ratios and high equipment and resource costs.

One Russell Group university loses an estimated £3,620 per chemistry student per year, it adds.

And figures like this lead the group to predict top universities will be £1.1bn in the red by 2012-13.

Russell Group director general Wendy Piatt said: "With funding reductions and the prospect of future cuts to manage, without clear means of increasing their income, meeting these challenges begins to look like an impossible task.

"There is now a real risk that we could lose academics who have been responsible for discoveries that have changed the lives of millions of people for the better."

Knowledge economy
The report says there are only three ways in which universities could reduce their annual deficits.

These are reducing costs by cutting staff; increasing income by recruiting more overseas students; or increasing income through domestic tuition fees.

It also suggests that graduates could pay back their loans earlier and at a higher interest rate.

Under the current system, students begin to pay back their loans when they start earning £15,000 a year or more, and at a low interest rate.

The public costs of funding the student finance system could be reduced by lowering the threshold at which graduates begin paying back loans, it adds.

A spokesman for the review of fees said it would consider the submission along with all the others. The Department for Business, Innovation and Skills said it would respond to the review when it reported in full.

University and College Union general secretary Sally Hunt said: "We desperately need to overhaul how universities are funded and move away from the idea that the current review of student funding is merely a question of how much student fees go up by."

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Some U.S. College Students Look to the U.K.

LONDON—When final-year economics undergraduate Robert Rogers transferred from Georgetown University to the London School of Economics, his annual tuition fees plummeted to around $20,000 a year from around $41,000.

"It didn't even occur to me to apply abroad when I was in high school," said Mr. Rogers, on a recent afternoon outside the LSE's Students' Union. "I certainly didn't hear of any of my [high-school] classmates applying to study abroad."

Mr. Rogers said that his reasons for moving to the LSE weren't financially motivated. But finances drive others to follow him. As tuition at U.S. colleges increasingly becomes less affordable for many—and as spots at the most competitive institutions more and more resemble gold dust—some American high schoolers are looking to the United Kingdom to meet their educational needs.
Doing the Math

It is almost heresy to say it right now here in the U.K., what with English students recently taking to the streets in protest at the government's proposal to raise tuition fees to no less than £6,000 a year (just under $10,000) for some domestic enrollees, but the fact remains that, by U.S. standards, universities across England, Scotland, Wales and Northern Ireland remain a "cheap" place to get an education.

Tuition fees in the U.K. vary from institution to institution, and also from region to region, but the cost for an overseas undergraduate at University of St. Andrews, in Scotland, for the academic year 2009-2010 would be about $19,000.

And if you're lucky enough to be able to claim "home" or "European Union" status, this figure would be just shy of $3,000 a year—though it is set to triple or even quadruple from 2012 onward for some institutions south of the Scottish border under the British coalition government's aggressive overhauls to higher-education funding.

Even to study in the University of Oxford's hallowed halls would cost a U.S. student just over $20,000 for an undergraduate program of study. (The fee would be about $4,700 for a U.K. student.)

Every college that features in the top 20 of the U.S. News and World Report's most recent ranking of best U.S. colleges costs at least $34,000 a year for tuition and fees. Most, in fact, are closer to $40,000 a year, and quite a few top that level.

The downsides of going abroad include: plane tickets, time zones, foul weather and the cultural labyrinth resulting from two nations divided, as the saying goes, by a common language. However, if one is contemplating spending at the higher end of the scale, there is also approximately $80,000 or more to be saved.

More than 3,000 normally U.S.-domiciled undergraduate-level students applied to do just that in 2009, according to UCAS, the organization responsible for managing applications to higher-education programs in the U.K. And while only 1,330 were accepted, according to UCAS, the relatively modest numbers mask a rising trend.

There has been a 27% increase in undergraduate applications from U.S. students since 2006, while the total number of U.S. students studying for full degrees at British higher-education institutions as of 2009—across both the undergraduate and postgraduate levels—stands at just over 14,000, data from the U.K.'s Higher Education Statistics Agency show.

It is "very important that [students] enter the global economy with global competencies," said Allan Goodman, president and chief executive officer of the Institute of International Education, in emailed comments.

Todd Weaver, an education consultant with Strategies for College Inc., a Canton, Mass.-based advisory firm, said that while students and parents in the U.S. are starting to realize that it is relatively inexpensive to study in places such as the U.K., they are also weighing the reduced cost against "the ability to have a network in place after college" when job hunting.

"If you go to school in New England, for example, there's a good chance you will be looking for a job in the local area," said Mr. Weaver.
European Vacation?

Steven Goodman, an admissions strategist with education specialist Top Colleges who has worked extensively placing students at colleges as far afield as Romania and South Africa, said the major difficulty facing U.S. students who want to study in the U.K. isn't necessarily to do with the perceived job market back home, but with "the English secondary-school specialization that is not usually a part of the American high-school curriculum."

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