Debt-A Class Act

Drawing near to the end of my university degree last year, I felt intense fear and apprehension about what the future might hold. But, along with fear I was excited to be entering a new phase of my life – the world that belongs to the responsible working adult.

After three fun-filled, yet stressful years at university I was eager to begin my career. I’d chosen to go to university with the expectation of it broadening my horizons both financially, (later in life) and socially. I believed all the hype that being a graduate would increase my career prospects and improve my earning power.

However, a year after graduating it shocks me to learn that “almost a third of graduate workers are in non-professional jobs six months after leaving university” according to the BBC News website. Out of this statistic, 18.3% are in administrative and secretarial work and 11.1% in sales and customer services. The sharp increase in young people going to university means that employees are more highly educated - but there are not enough jobs to go around, meaning there are more graduates vying for one job.

English Literature and Media Studies graduate, Kelly Goodall, 22, feels the level of debt she’s in is depressing, and she isn’t happy with where her degree has got her. She says: “Although the average salary is meant to be £18,000, many graduate jobs pay a starting salary of around £12-14,000 which is ridiculous when you consider the amount of debt accumulated at university. I almost feel tricked by the education system as it leads us to believe that a university education will give us a better future. Instead it seems to me that the university system is one big business whose sole aim is to increase profit without considering the debt it leaves young people in.”

Southampton University, History graduate, Claire Burbidge, 23, agrees: “Sometimes I feel that my degree isn't worth the paper it's printed on. When I left uni two years ago I was told by teachers and the government: “Go to uni and you will get a great job”, But that hasn't happened. Instead I have found myself constantly being rejected for jobs due to my "lack of work experience" and forced into doing jobs I hate and that don’t require a degree. All of this is done to try and earn some money to pay back the debt I racked up at uni.”

Mary Ring, 24, explains: “I wanted to go into TV or journalism but found the only way to achieve this ambition was to do unpaid work experience and subsequently get myself into more debt. If I could have my time over, I would have spent the money for my degree on gaining work experience and maybe another year of travelling.”

So, is there any point in going to University or is it just another con? Are there any positive reasons for going or will you leave feeling bitter and cheated at the education system?

Caroline Hutchinson, 22, graduated from Kingston University in 2005, with a degree in Therapeutic Radiography. She feels that university education is worthwhile, but it’s vital to thoroughly consider your future career opportunities before deciding which course to do. She says: “Obviously a course such as the one I did restricts your career path, but on the positive side it practically guarantees a career at the end. Jobs working within the public sector may not seem glamorous, but they offer security, decent levels of pay and a promising future. I also received a bursary from the government which means my student debt isn’t as high as some people’s.”

But, with so many students attracted to courses such as Media Studies and English, they are finding problems securing employment because these courses don’t necessarily qualify you to do any particular job. And according to The Times Higher Education Supplement, in 2004 “59.4% of students who obtained a first degree were awarded first or upper-second class honours.” So, this demonstrates that not only are there a greater number of graduates than ever before, but they are also achieving better results – therefore increasing competition significantly.

However, Susan Bassnet, pro-vice-chancellor of the University of Warwick defends degree courses such as media and cultural studies and English. In her article Good at Ground Level, she says that it’s vital for students to enjoy their courses and her advice to students “interested in English, cultural or media studies is to look carefully at the syllabus and establish how much time will be devoted to the study of primary works, how much time will be spent on more practical courses and how much time will be spent on theory.”

Susan Bassnett doesn’t feel that studying courses such as English will inhibit your career prospects, in fact, quite the opposite. She says: “Graduates in English are highly employable, not because they can recite Shakespeare's sonnets by heart, but because they have been trained to understand the structure of written texts.”

But, then there is still the high amount of debt that needs to be considered. And shouldn’t we bear in mind that Susan’s job is to promote universities? So, it’s back to the question of whether or not a degree is really worth the debt?

According to The Times Higher Education Supplement, June 2006, statistics show that the total income of all UK higher education institutions of 2004-2005 was £186 billion. Even more alarming is that income exceeded expenditure by £237 million in 2003-2004.

It’s obvious to see – where students are struggling and clocking up debts, the universities are benefiting financially… in our (borrowed) money.

It is impossible to ignore the opinions of so many dejected, disillusioned graduates when they say that universities main concern is making money. And as Claire says: “All I got out of uni was £15,000 worth of debt and a job cleaning caravans - which does not require a degree. I think the current government’s goal to try and get 50% of people into uni is ridiculous and will only end up with more disappointed students.”

The current plan set by ministers to get 50% of young people into higher education by 2010 seems ridiculous and unfair to graduates. BBC News states a valid point when they say that, “Opponents say this will flood the employment market with over-qualified staff and do little to improve the UK's skills shortage.”

Peter Carlisle, a 24-year-old graduate agrees, “Everyone has degrees these days and the way we are doled out loans to come to university is disgusting. Many 18-year-olds don’t know what career they want to do, let alone consider the level of debt they’ll be paying off for possibly 40 years after graduating.”

The trend of borrowing money seems to fit in with our current society’s view that buying everything on credit is okay, and we’ll worry about the debt tomorrow.

So, rather than graduating from university with a large debt, but being secure that you’re in a privileged position and have something extra to offer that distinguishes you from every other person applying for a job, students graduate and aren’t really in a better position at all. For a start, employers are now demanding experience. Add this to the fierce competition, how will graduates ever secure decent wages to pay back loans?

And with fees set to rise further, we have to ask ourselves – is it really worth the debt?