Tuition Fees: “The future looks pretty grim”
University tuition fees are likely to soar to £5,000 a year by 2010-2011. The think-tank Policy Exchange said last week’s announcement of £449m in government cuts to higher education made increasing fees, which are currently capped at £3,225 a year, all the more critical. Following this, a study carried out by Policy Exchange warns the government’s £25 billion student loan debt is on track to rise to over double this in eight years time unless action is taken to increase fees.
Anna Fazackerley, the study’s author, reports: “Not all students can and should be fully supported in the same way” suggesting that loans should be given out in an even more stringent manner.
Though it is agreed by leading universities that teenagers from the poorest backgrounds should still be able to take out interest-free loans subsidised by the taxpayer, the study argues that students from wealthy homes should no longer receive government-subsidised interest free loans, but be offered low-interest private loans instead. It also said that middle-class parents, many of whom pay for private schooling, should continue contributing to their children’s education beyond the age of 18. While researchers accused “large numbers” of well-off parents of abusing the current student loans system by borrowing money in children’s names and putting it into a high-interest savings accounts to make a profit.
According to the report, vice-chancellors are preparing to cut certain courses to balance their books and are also preparing to up the intake of international students, who can pay up to 10 times the British undergraduate, in order to bring in more money. Our own Vice-Chancellor, Professor John Craven, may also be looking into other options as he too has said that he does not want to see fees double.
“If we want to retain Britain’s position as a global leader in higher education, we are convinced that fees will need to rise.” The forecast for university funding is that there are yet more reductions to come. “The future looks pretty grim” concluded Anna Fazackerley. Overall however, the report was welcomed by universities as the only feasible option to secure sufficient funding and maintain high quality teaching and provision for students.
Wes Streeting, president of the National Union of Students, said: “We cannot allow a rise in fees to expose students and their families to the risks, mistakes and potential calamities of the market. Such a market would reinforce social and economic privilege, and price poorer students out of the most prestigious universities.”
Results of the study are to be fed as evidence into the independent review of student tuition fees, loans and grants ordered by the Government last year. Lord Browne, chairman of the review panel, is expected to report back with recommendations concerning fees after the General Election.
