Confusion reigns over tuition fees

The enrollment rate regime has led to nothing new, but the confusion, says Mike Baker - no wonder that students have difficulty making decisions

complex financial strategies, objectives, changing last minute changes of competitive strategy, maneuvers - No, not the crisis in the euro area again, as preparation for the regime of new listings. Given this confusion - the latter being the application of 27 universities and colleges to reduce their average net fees - How the candidates to make informed decisions about where to study? After all, later this month, when the Office for the rules of equal access to these offers, many candidates who have already hit the "Send" button on their UCAS forms.

is a strange market when the price changes after customers place their orders. But, again, this is a very strange situation when the government says it wants a fresh free market, but keeps introducing new regulations to fix the market.

When universities set their tuition fees for 2012-13, the key question for most was the place to establish so-called "sticker price". Moreover, it is significant as a phrase borrowed from the automotive industry sales have been so rapidly adopted for higher education. However, this language is consistent with a pricing system, at least initially, encouraged universities to indicate whether they were in the class of 9000 pounds. As a matter of prestige, very few people could afford to say they were not.

But alarmed by the lack of price differentiation in the market, the government changed the rules. Slices over 20,000 places each university "core" student number allocations and said he would instead offer these other places "margin". The catch is that only institutions to charge an average of less than £ 7500 (after fee waivers) may bid to recover some additional places have been lost.

where the last-minute change of mind by these 27 universities and colleges. Although not yet know they are all, it is likely that most will charge these fees are currently average just over £ 7500. The 63 universities with average rates of between £ 7.500 and £ 8.500 check will be nervous to see what your competitors are doing.

With a little manipulation of the resignations of its shares, or the figures provided in their current lower prices may be eligible to tender for 20,000 additional students if the demand decreases as expected , could become a financial lifeline. Despite the headlines, however, students should not expect significant reductions in rates. Part of the apparent reduction is obtained by changing the scholarship in the exemption. In fact, it remains quite possible that universities continue to charge £ 9000 in some courses, while still managing to reduce their "average" rate of less than 7500 pounds. This way, you can always combine the prestige of an identification card with the books 9k safety net of eligibility for the market at reduced prices.

• is like a car salesman, once it has stopped selling the new model and its elegant showroom at the back door to see the "nice little runners" newcomers in many cars.

course, college applications should not really be like car sales. Fortunately, anecdotal evidence suggests that applicants are not acting as consumers and not be swayed by a few hundred pounds to be removed in the rates. In a recent open day of college, not one of the prospective students and their families, to whom I spoke said they would be influenced by changes in the cost price. In fact, many do not even know the range of rates available in the universities that were sampled.

They argued that the exchange rate on the full range of universities considering varied only marginally. This does not mean that money was not an important factor in their decisions. In fact, several said, however, the cost could persuade them to leave the university altogether or choose a local college to save on living costs by staying home.
Meanwhile, major universities are charging £ 9,000 across the board will not be affected by this move last minute prices. It will cut prices to drive out the "margin". Thus, curiously, in higher education that the government follows a policy that is the opposite of what you do with the premium per pupil in schools. Instead of public money goes to institutions that serve disadvantaged students, the effect of these changes will tighten the net expenditure per student in universities and colleges Fe which are more likely to recruit students from disadvantaged backgrounds .