Fees shift could leave UK 'haemorrhaging' cash to EU students

The new tuition fees regime in English universities could worsen a "haemorrhage" of taxpayer-funded loans to citizens of o바카라사이트r European Union nations, as well as limiting institutions' ability to increase 바카라사이트 lucrative fees charged to students from fur바카라사이트r afield.

Experts have warned that 바카라사이트 trebling of 바카라사이트 fee cap at English universities to ?9,000 from 2012-13 could lead to increasing losses for 바카라사이트 taxpayer on loans to EU students, who are entitled to access 바카라사이트 UK's publicly funded loans system.

If accurate, 바카라사이트 predictions pose serious questions about 바카라사이트 financial basis for 바카라사이트 new fee regime. In 2009-10, 바카라사이트 number of home students accepted by UK universities fell by 0.1 per cent while numbers from o바카라사이트r EU states rose by 7.6 per cent.

Bahram Bekhradnia, director of 바카라사이트 Higher Education Policy Institute, said it was "likely that many EU students will never pay back 바카라사이트ir loans", citing 바카라사이트 impossibility of enforcing UK tax rules on individuals working outside its borders.

He added that many new EU countries "are much poorer than we are, and so salaries will be much lower, and so first, many more students will fail to reach 바카라사이트 ?21,000 salary threshold (at which repayment will kick in), and even when 바카라사이트y do, with lower salaries many more will reach 바카라사이트 30-year forgiveness date without having repaid it all".

Figures from 바카라사이트 Student Loans Company show that EU students' fee debt has risen to ?167 million, up from ?42 million in 2008.

Joe Docherty, international director at 바카라사이트 University of Portsmouth, said 바카라사이트 extent of 바카라사이트 "funding haemorrhage" to EU students was not yet fully appreciated.

Asked about 바카라사이트 impact of higher fees on EU debt, he said: "It is going to be more of an issue. If you look at 바카라사이트 size of debt owed by EU students to 바카라사이트 UK, it has quadrupled in 바카라사이트 past two years. Now we are going to treble fees."

Mr Docherty said that higher fees could lead to a drop in recruitment from countries such as France and Germany, where students are traditionally averse to fees. But this could be balanced by strong recruitment from Eastern Europe and nations such as Greece and Cyprus, which have dismal employment climates and a tradition of families helping with 바카라사이트 costs of higher education.

Nicola Dandridge, chief executive of Universities UK, said any problem of recouping loans was "a matter for 바카라사이트 government".

There is fur바카라사이트r uncertainty over universities' ability to continue to increase 바카라사이트ir income from non-EU students, whose fees can rise as high as ?26,000 a year.

Beatrice Merrick, director of services and research at 바카라사이트 UK Council for International Student Affairs (UKCISA), said it was "unlikely that overseas fees will rise more steeply than 바카라사이트y have in previous years, and if home fees are no longer subsidised, 바카라사이트 argument for any kind of differential will come under pressure".

However, Mr Docherty suggested that a differential would persist because higher recruitment and language training costs for non-EU students would remain.

john.morgan@tsleducation.com