The financial debt of universities in the UK is increasing significantly. Recent reports have analyzed the outstanding amounts of the past five years. According to the studies debt has risen from about £6bn to £9bn during this time. There has been a large increase which has affected many institutions.
The Increase Is Not Only Caused By The Pandemic
The results of the study can partly be traced back to the pandemic, which especially affected many educational facilities financially. However, the sharp increase in debt is mostly due to ambitious projects that have been organized by universities in recent years. This includes the purchase of properties that are intended to be used as student housing. The cost of new buildings has also contributed significantly.
Studies have shown that the student numbers at universities in the UK have risen by over 3% and were thought to be at about 2.46 million in 2019/2020. Higher university attendance has increased the need for more housing and other services.
When the pandemic hit the world unexpectedly many students left their universities which increased the financial burden for the institutions. It became impossible for overseas students to attend classes in the UK.
Student Debt Has Also Increased
Additionally, student debt has also risen. According to the Student loan statistics of the House of Commons Library about 1.3 million students in England receive over £17 billion in financial assistance every year. In March 2020 there were still about £140 billion to be paid to universities. It is estimated by the Government that the number of loans will increase even further and will amount to £560 billion by 2050.
Universities UK writes that there were 485,645 international students studying in the UK during 2018/2019. In total over 2.38 million students attended classes in the UK during this time.
Many institutions are invested in finding a solution. It is not uncommon for companies and institutions to face financial burdens. In the private sector, temporary management has helped solve financial difficulties. Therefore, many companies have relied on interim recruiter agencies. Experts in managing situations like the ones that the universities in the UK are facing can help during stressful times.
As the pandemic eases, student numbers are expected to increase in the near future which will help universities pay off some of the debt and become more financially stable.
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