Microgen is the latest company offering graduates support when paying off their student loans, by matching all UK university graduates' monthly contributions of up to ??250 a month.
The scheme kicks off this month, in line with other companies that are choosing to introduce such schemes; illustrating recognition of the current financial risks that students take when attending university. These schemes will become even more important to perspective graduate employees, when considering that 23 universities have already announced their plans to increase tuition fees to the maximum ??9000 in 2012.
A potential extra ??3000 a year will become invaluable to graduates looking for graduate jobs, and for those trying to lift themselves onto the increasingly unstable property ladder. Companies offering this level of support will stand out of the crowd, encouraging graduate applicants. Statistics from Income Data Services have recently announced that graduates' average starting salary increased by 1%, to ??25,100 in 2010. This may seem like a step in the right direction, yet when compared to the 3.7% inflation of the Retail Price Index (RPI), graduates are effectively taking a pay cut. Coupled with that figures that there are '44 applicants for every graduate vacancy in 2010, up 25% from 35 in 2009,' the graduate market is still incredibly tough.
Therefore, the support of companies like Microgen and GlaxoSmithKline, who have implemented a similar scheme, will help to recuperate some of the loses made by the effects of inflation. Moreover, Microgen has been doing more than just splashing the cash; they have written to the Department for Business, Innovation and Skills with 'suggested ways to encourage more employers to adopt similar schemes.' Hopefully such incentives will encourage students to continue on to higher education and gain the high-level skills so desperately needed within the UK public sector, giving the economy a well deserved boost.
Jenni, GRB Journalist
