Funding higher education: issues and implications

<p>Many of you reading this article may be considering - or even in the process of applying for - a course at university. In that case, you are probably quite familiar with the recent reforms to the way higher education (HE) is funded in England and Wales. Some of those who apply, particularly those with lower family income, may end up better off under the new system as a result of their entitlement to the new grants and bursaries, while others will be worse off overall. But nearly all applicants can expect more debt upon graduation than their predecessors. If these changes are going to affect your finances now and in the future, then you will no doubt be curious why the new legislation was introduced. The Act itself was politically unpopular, but did it carry any economic justification? In this article we will explore the economic principles behind funding and attending university.</p>