University building - a fake economy?

It seems that the bulk of new buildings going up in Sheffield are either being built by universities or for university students to live in. This is not so surprising given that universities can now charge £9000 per year in fees, and now that accommodation costs are funded almost entirely by borrowing, removing some of the incentive to keep costs down since it's all on the never-never.

What concerns me about this is that there is a big shortfall between what the government expected to collect in repayments of student loans and what they are actually getting back. This is not helped by Britain's low wage economy which seems destined to keep many below the threshold for paying the loans back.

So it looks like another bubble that will burst a few years down the line, with the only winners being the owners of the accommodation blocks.

All the above is true, but meltdown is coming regardless, when we exit the EU.

speaking as a left-wing dinosaur (one of the nicer comments people have made about me) I always thought New Labour imposed a student tax to keep high-achievers from poor backgrounds out of University.

After all, Tony Bliar doesn't want your kids getting that nice, well-paid job ahead of his own privileged spawn, does he?

speaking as a left-wing dinosaur (one of the nicer comments people have made about me) I always thought New Labour imposed a student tax to keep high-achievers from poor backgrounds out of University.

 

After all, Tony Bliar doesn't want your kids getting that nice, well-paid job ahead of his own privileged spawn, does he?

Same thoughts here, but I could see several years ago that this was a road to nowhere unless you were training in new technology or engineering neither of which unfortunately is my area. Still there should be plenty of opportunities for growing the sunshine crops once we are out.

The majority of funding from students in Sheffield arrives in the form of foreign students. Pull the plug on immigration, pull the plug on those students. For years the Universities UK body has been explaining that a large number of 'immigrants' are in fact students.

Keep that thought in mind for when your proved wrong. The only meltdown is in the minds of people who fear change

or fear of jumping into big black holes when you dont know whats on the other side?

we STILL DONT

no one ever does.

thats how progress is made. we take chances.

Christ, can we stop arguing about Brexit for 5 chuffing minutes.

Sheffield Uni is currently shedding staff and student numbers are falling. Part of it is due to the uncertainties over Brexit but it's also due to counting it's chickens and expanding exponentially only to realise that bubbles......burst.

no one ever does.

thats how progress is made. we take chances.

or devolution Oo

Foreign students can be charged two to three times the £9000 depending on the degree they are doing. But wait, we want to kick all the foreigners out..... never mind.

It seems that the bulk of new buildings going up in Sheffield are either being built by universities or for university students to live in. This is not so surprising given that universities can now charge £9000 per year in fees, and now that accommodation costs are funded almost entirely by borrowing, removing some of the incentive to keep costs down since it's all on the never-never.

 

What concerns me about this is that there is a big shortfall between what the government expected to collect in repayments of student loans and what they are actually getting back. This is not helped by Britain's low wage economy which seems destined to keep many below the threshold for paying the loans back.

 

So it looks like another bubble that will burst a few years down the line, with the only winners being the owners of the accommodation blocks.

The new buildings are largely about chasing student satisfaction. Since the higher education system has been marketised and core funding is being based on student satisfaction, universities have to do all they can to offer the best facilities to keep students happy.

Unfortunately the £9000 doesn't realistically reflect the full cost of delivering a lot of degree courses, so the money isn't coming from tuition fees.

It seems that the bulk of new buildings going up in Sheffield are either being built by universities or for university students to live in. This is not so surprising given that universities can now charge £9000 per year in fees, and now that accommodation costs are funded almost entirely by borrowing, removing some of the incentive to keep costs down since it's all on the never-never.

 

What concerns me about this is that there is a big shortfall between what the government expected to collect in repayments of student loans and what they are actually getting back. This is not helped by Britain's low wage economy which seems destined to keep many below the threshold for paying the loans back.

 

So it looks like another bubble that will burst a few years down the line, with the only winners being the owners of the accommodation blocks.

As I cruise round this fair nation and particularly it's cities, this phenomenon is not restricted to Sheffield. Most student unions I've been to recently are very big and very new with lots of accommodation. The old dingy 60s buildings with sticky floors on definately on the decrease.