A brief history of tuition fees and student enrollments in UK Higher Education

For this analysis we used data publicly available by HESA.

We are only going to focus on UK Higher Education Institution (HEI) student enrollments in this analysis. According to the collected data and the following graph, HE Institutions in the UK have in the year 2015-2016 272000 less students enrolled compared to the year 2009-2010. That is a 10,66% decrease in student numbers.

UK Enrollments (2009-2016)

Although we are only going to focus on what happened between the 2009-2016 period, it is worth having a look at how was the Higher Education system prior to the 2009-2016, as some decisions taken before may have influenced the number of student enrollments.

UK Higher Education system prior to 2009

Before September 1998 students enrolled in UK HEI did not pay tuition fees. In July 1997 the Dearing Report was published suggesting that University tuition fees should be introduced. In September 1998 students enrolled in UK Universities start paying GBP 1000 \ annum.

In 2004 and under the Higher Education Act 2004, tuition fees caps can be raised and Universities in the England can charge up to GBP3000 \ annum starting from the academic year 2006-2007. This measure is introduced in Northern Ireland the same year, while Welsh Universities raise their tuition fees in accordance to the HE Act in 2007-2008.

2009-2016

In 2009-2010, the year we have data for, the tuition fees are raised from GBP3000 to GBP3250 \ annum.

Following the Browne review the tuition fees cap was raised and in December 2010 it was announced that the tuition fees are going to be raised starting from September 2012 from GBP3250 to GBP9000\ annum.

If you see the graph, the academic year 2011-2012 enrollments across the UK are decreased slightly, followed by a 6,88% drop in student enrollments the following year. By September 2014, universities in the UK have almost 300k less students enrolled compared to its pick in the year 2010-2011. Student enrollments only bounce back up slightly for the year 2015-2016 (+0,65%).

But let’s see what happened so far in each of the UK constituent parts.

England

Student enrollment in Universities in England follow the same trend as seen in the UK student enrollments for the same period. That is not a surprise as Universities in England attract more than 80% of  University enrollments in the UK.

University Enrollments England (2009-2016)

Scotland

On the other hand, while the UK has seen a general drop in University enrollments starting from 2010-2011, enrollments in Scottish Universities dropped slightly for only two years (2011-2012 and 2012-2013). Since 2013 enrollments in Scottish Universities have increased by almost 10%.

Scotland Enrollments (2009-2016)

You are probably wondering why. The answer is simple. Following devolution in 1999 the Government of Scotland brought its own Act on tuition fees. So when in England the tuition fees were raised in 2012-2013, the Scottish Government kept the the tuition fees for Scottish and EU students lower compared to tuition fees in England . Currently tuition fees in Scotland are GBP 1825 \ annum for a full time undergraduate degree and at GBP 3400 \ annum for a full time postgraduate degree. Students from RUK (England, Wales, and Northern Ireland) would currently have to pay between GBP6750 and GBP7400 \ annum to complete a undergraduate study in a Scottish University and GBP 3400\ annum for a postgraduate course. The tuition fees for 2017/2018 are going to remain the same for Scottish and students coming from the EU while the tuition fees for postgraduate students coming from England, Wales and Northern Ireland can be up to GBP 9000 \ annum.

Wales

Enrollments Wales (2009-2016)

Welsh Universities have seen a drop of more than 22% in student enrollments since their 2011-2012 pick. Although there is not a simple explanation why student enrollments in the UK fluctuate over the years, the decrease of students in Welsh Universities can be attributed to:

a) University mergers that took place between 2011 and 2013

and

b) The raise of the tuition fees, which for students coming from the UK and the EU are currently the same as in English Universities -GBP 9000\ annum- and they intent to stay the same for the year 2017-2018.

Northern Ireland

Student enrollments in Universities in NI follow the same trend as enrollments in Scottish Universities with an increase of 8.34% in student enrollments since 2009.

NI Enrollments (2009-2016)

One of the reasons that might explain the increase in enrollments is that the full time students from NI and the EU member countries pay GBP4030 \ annum for an undergraduate degree, while tuition fees for students from England, Wales and Scotland can be up to GBP 9000 per year. Again, as in Scotland, tuition fees in Wales are much lower for local and EU students respectively compared to the tuition fees in Universities in England.

The future

On the 23rd of June 2016  EU membership referendum took place across the UK and the result shows that the UK is going to leave the EU  with any impact that that might have for EU student enrollments in UK Universities. The latest UCAS analysis regarding applications for the March deadline show a decrease in applications from the UK (-4%) and from the EU (-6%) compared to the March 2016 deadline.

Tuition fees in England are going to be raised again starting from September 2017 at GBP 9250 per year.

Only recently and during the June 2017 General Election, Labour party announced their intention to scrap University tuition fees if they win the General Elections starting from September 2018.

The next 2 years are certainly going to be very challenging and intense for the Higher Education Institutions across the UK. We just need to wait and see.

Thank you very much! You ‘ve been fantastic and I hope you enjoyed it!

 

 

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World University Rankings. An infographic (2/3)

We crunched once again the data from the latest World University Rankings published by THES, QS, CWUR and Shanghai Ranking Consultancy (ARWU) and we present them to you as per Economic Organisation (OECD countries, BRICS and Rest of the World).

Enjoy!

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Starting up a start up. A personal experience -Saving and finding money (2/2)

In our last post we talked about financial planing when starting your own company. The big question still remained ;

Where do you get funding?

At least in the UK there are plenty of options. As we explained in a previous post, there is no right or wrong way to start your company and this list is based on our beliefs, opinions and experience only. So what works for us does not necessarily mean that works for you as well. And certainly we have a “unique” way of how we see and do things. Probably not the typical company.

  1. Payday loans. Nope. Not a good idea; very high interest rates.
  2. Loans. In 2014 we talked to 2 financial advisors from a growth hub. We were told that a business loan can have an interest rate of up to 12-13% per annum. Immediately our answer was NO. Although Academous has great potential why to get a loan with such an interest rate when you are unsure if your idea is going to work or not? And anyway, you do not have the money now. What makes you think that you will have the money in one, two or three years? For us that would have been a ticking time bomb. If we would have got a bank loan, it would have been also the bank’s fault and the story of the global financial crisis we are still experiencing, would repeat its self. Like nothing has changed after 10 years and after so many people becoming poor, homeless and jobless due to poor decision making from both parties (banks and borrowers). Like the banks and the citizens have not learned nothing from this crisis.
  3. Angel investors. That idea was also on the table when we were discussing with the aforementioned financial advisors. We don’t like the idea of giving equity to someone who would get a big chunk of your company and your future profits for such a small amount. Also it seems that there is a growing concern that start ups burn money very fast and investors are not very happy about that. And also investors\venture capitalists\lenders are acknowledging the risk they take when investing\lending money to companies, but if the companies survive, they will ask their money back. So again you work for someone else instead of being your own boss. For these reasons we said No again.
  4. Peer to peer lending. We have read only very few things about it. The interests rate of a P2P loan can be lower compared to a bank loan. In the UK P2P lonas are not regulated by Financial Services Compensation Scheme (FSCS) with whatever that might mean for both parties; the lender and the borrower. It is usually a mixture of a loan and an investment. You ask for capital and in return you either give equity or you need to repay the money you borrowed with an interest rate. As you can understand we crossed that from our list for the aforementioned reasons.
  5. Borrowing from family and friends. We have never done that. Hopefully we will never do it.
  6. Government loans. In most of the cases you need to have assets in your name or your company needs to generate a certain turnover in order for it to be eligible for a government loan. Not applicable for a company in its early stage. Again if we fail, we need to pay the amount back. And remember, there is great uncertainty in business. Especially nowadays -just read the financial news and hopefully you will understand what we are talking about.
  7. Grants.Now that’s a capital idea! You get a small amount, you do not need to give any equity of your company to someone and you do not need to repay it even you fail. Unfortunately there is A LOT of competition. We applied twice and we failed. In fact we know other companies who applied for grants and failed as well. What can you do? Failure is part of life too. For every “success story” that you hear there are many more that failed. And that is fine.
  8. Crowdfunding. Now we are talking! You do not have to give any equity and a lot of people who find your idea interesting contribute an amount, small or big, and you have your 20K. It sounds easy? Yes? Here is a nice question.

    How do you engage all these people within 1 month in order to contribute to your cause?

    We have no personal experience with crowdfunding but we intend to find in a few months. This is our next goal.

  9. Regional Development Programmes. They are Programmes funded by the EU and their aim is to assist less developed regions across the EUAcademous is based in the Northwest of the UK and in 2014 there were Regional Development Programmes that were providing technical assistance to Small and Medium size Enterprises (SMEs). We applied, our application got accepted, and because of these programmes the front end of our MVP was born! We would like to thank everyone who was involved in that. Without them we would not have made it. And this is one more reason why we are against BREXIT. We believe that without these programmes a lot of SME’s will close and only the big companies will operate in the UK. But of course this is just our opinion.

Probably this list is not complete. Probably there are many more ways of funding an idea. We just don’t know them -yet.

Thank you very much for reading this! You ‘ve been fantastic and we hope you enjoyed it!

* Featured Image Designed by Freepik

Starting up a start up. A personal experience- Finding & saving money(1/2)

“Money is the root of a thousand and one evils” from Bushido, Samurai Ethics and the Soul of Japan, Inazo Nitobe. Although this book is written more than a century ago, we could not agree more. Just recently it was announced that Karhoo, a company offering similar services to UBER closed down after having a spent $250M!.

If you are starting a company because you want to be rich, you might want to think again. Until you become rich as you dreamed -we don’t want to be pessimistic but there is a high chance that you will never be- there might be a very long road, during which you need to go through uncertainty, dilemmas, decisions and perhaps poverty. If you cannot cope very well with stress, if you are used to living a life of luxury (what is a luxury is completely subjective and depends on our life standards and experience) and if you do not have capital of your own or secured from someone else,  you might want to think again about starting your own company.

Anyway… Back to our subject; money. To be honest with you, finding funding for a company which is at its very early stages is probably one of the most difficult things you will have to go through. So instead… let’s start talking about saving money first. It might be a good idea to write down your expected expenses till your company starts trading. It is actually a very good exercise for the rest of your every day expenses. Before you write something in that spreadsheet, think;

  • Do you REALLY need it?
  • Is there a cheaper or -even better- a free, equally good, alternative available?
  • Can you do it by yourself?

We guarantee that if you answer these questions sincerely after you have done your research, you will probably save A LOT of money. Also people or companies you want to borrow money from, they will ask for this spreadsheet. They call it “cash flow projection” or something -that sounds equally important- among these lines.

Piggy Bank on beach vacation

Summer photograph designed by Kstudio – Freepik.com

But how much money do you or your investors need to spend on your project till you have your Minimum Viable Product (MVP)\your demo\your office\your store? The answer might give you a rough idea of how much money needs to be spend in order to start your company. Although writing down your expected expenses is a wise move and in spite of the fact that you did the best financial planning you could think of, that does not mean that you will manage to calculate exactly how much money you will end up spending. If you do, please get in touch with us. We need to talk. And the spreadsheet you made and update frequently will only give you a rough idea of your expenditures because as you will experience, expenses just come up.

When we started Academous, we tried to keep it simple. The question was how much money is needed in order to launch the website. The answer was easy; the minimum. Our shopping around indicated that we needed about 15K, most of it to be spent to develop a fully functional website. Not a lot of money one might think. But… we were working full time on the Academous project. So if you are in a similar situation, you will probably need to add your living expenses on top of the expenses for your demo\MVP\office\shop\. Still the big question is;

Where do you find funding?

Stay tuned! We will answer this question in our next post. Otherwise this would have been a long, boring post.

Thank you very much for reading! We hope you enjoyed it!

World’s Top University Rankings. An Infographic (1/3)

Hello again!

Every year 4 organisations that focus on Higher Education across the World, the Times Higher Education Supplement (THES), the Shanghai Ranking Consultancy (ARWU), Quacquarelli Symonds (QS) and the Centre for World University Rankings (CWUR) publish their own list of the World’s Top Universities.
There are a few differences across the Rankings as each organisation use different factors to evaluate the HE Institutions across the World. Based on the World’s University Rankings that are available online, we created this Infographic, which is the first of a series of Infographics to follow.

Enjoy!

new-piktochart_17419775_741e6fde9b75fece390a5783f8bd97b4421162ca

Starting up a start up. A personal Experience. (1)

Hello, again!

We are sure that you have read “the top 10 tips to be a succesful manager”, “in order to succeed you need to have these top 5 skills”, “before starting a company, you should read this”, etc etc. Actually the web is full of those top 5, top 10 advice for everything. We will not give you advice of how to and certainly there is no right and wrong way of building your own business. But we would like to share with you our experience of starting a company.

– Time is not working FOR you and impatience is NOT a virtue . We had the idea of creating academous in 2013 and we started working on it since October 2013. We thought that in two years we would have had an up and running website. We were wrong; 3 years later and we are somewhere between alpha and beta testing of the prototype. You see… Life is not following a linear course and if you have not experienced it so far (we hope that you will not, but you will!) it has a lot of up and downs. And you have to roll with it, set small goals, be realistic with them and adjust accordingly to the obstacles that come one after the other sometimes. If you fall, get up. If you fail, see what went wrong and try again. And keep in mind that unfortunately (and despite of us not being gamblers) luck plays an important role in life too together with consistency and perseverance.

There are a lot of tests in the internet that according to your answers tell you if you are suitable for being a entrepreneur or not. When we did one of these tests, it said that we are unfit for enterpreneurship. It might be true. Or not… Who knows? Only Time will tell.

But we can tell you this, if you usually quit easily and you are lazy and not feeling like working a lot of hours for your business, yes… the business will not be built by itself. We ‘ve read somewhere that entrepreneurs prefer to work 10-12 hours for themselves, than working 37 hours for someone else. From personal experience, we can confirm that. Also we ve “read somewhere how important it is in life not necessarily to be strong… but to feel strong! To test your strength at least once!”, as Christopher McCandless says in Into the wild. And Academous is our personal test. And you know… at some point in their lives “Everyone has their own Pacific to cross”. And this is our Pacific.

Thank you very much for reading! We hope you enjoyed it!