Debate Magazine

People Value Things More If They Have to Pay for Them - Part the Manieth

Posted on the 01 September 2015 by Markwadsworth @Mark_Wadsworth

From the BBC:
University drop-out rates fell sharply after tuition fees were increased, according to researchers.
A report from Lancaster University Management School examined the impact of the 2006 round of fee increases, when they rose to about £3,000.
It indicated drop-out rates had fallen by 16% - with the biggest reduction in prestigious Russell Group universities.
The study suggests higher fees focused students' thoughts on the need to get a good degree and pay off their debts.

As I always said, this was one the advantages of having tuition fees. People who weren't 100% serious about finishing a course wouldn't start it in the first place; and under the 'sunk costs' fallacy, fewer people would change their minds half way through.
Which sort of justifies nominal tuition fees of up to £3,000 a year, but does not justify £9,000 fees (even if many people will never actually repay much of them - because it's not really tuition fees at all, it is a graduate tax). The article seems to be saying that there was no noticeable further decline in drop out rates when they went to £9,000.

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