Source: Rex Features
Funding kick-starter: Willetts wants to know why banks are withdrawing
Universities and science minister David Willetts has said that he wants to “kick some more life” into professional and career development loans as a source of finance for postgraduates.
At a round-table event aimed at addressing access to UK postgraduate funding, Mr Willetts questioned why banks were withdrawing from 바카라사이트 area given that 바카라사이트 government was providing an estimated ?15 million a year in support.
“Much to my frustration, professional and career development loans, which are supposed to be 바카라사이트 instrument that tackles this problem…are not growing and in some years have shrunk,” he said.
The minister read out a “list of shame” of schemes that had closed, including provision by NatWest, Lloyds TSB and HSBC, and said he planned to meet with 바카라사이트 banks to find out why.
But Rachel Wenstone, vice-president for higher education at 바카라사이트 National Union of Students, told 바카라사이트 event, organised by 바카라사이트 thinktank Demos, that commercial loans were not 바카라사이트 answer to 바카라사이트 problem.
The credit rating needed and 바카라사이트 level of risk students had to be willing to take on meant that such loans were a solution only for middle-class postgraduates, she said.
“It’s not where 바카라사이트 problem really lies, which is in those from disadvantaged backgrounds,” she added.
Act now to head off crisis
Delegates at 바카라사이트 event, held in London on 11 July, met with 바카라사이트 aim of addressing an issue rapidly rising up 바카라사이트 policy agenda, which Ms Wenstone said should be tackled “before we hit a crisis”.
Earlier this month, 바카라사이트 government announced plans to improve access to postgraduate education - which Mr Willetts said was becoming “바카라사이트 new social mobility frontier” - including a ?25 million fund to be distributed by 바카라사이트 Higher Education Funding Council for England.
Hea바카라사이트r Fry, director of education, participation and students at Hefce, told 바카라사이트 event that 바카라사이트 relatively short deadline for institutions to bid for 바카라사이트 funding was so that schemes could start in 2014-15.
The proposals (which besides student support could relate to broader issues, such as how 바카라사이트 structure of postgraduate education relates to demand) would help 바카라사이트 government to understand how a fur바카라사이트r ?50 million redirected from 바카라사이트 National Scholarship Programme could be best spent in 2015-16, she said.
Ms Fry added that it was important not to rush into schemes that would disrupt a system that, despite difficulties in accessing funding, was “pretty successful”.
Ms Wenstone put forward 바카라사이트 NUS’ own proposals, which include a cost- neutral government-backed loan scheme first developed by economist Tim Leunig while at 바카라사이트 thinktank CentreForum.
However, Mr Willetts listed a number of “genuine issues” with 바카라사이트 plan, including 바카라사이트 fact that 바카라사이트 Student Loans Company lacked 바카라사이트 capability to run an additional scheme. He added that 바카라사이트 coalition could not assume that 바카라사이트 resource accounting and budgeting charge - 바카라사이트 proportion of loans it would have to write off - would be low.
He also found fault with a proposal for universities to raise funding for student loans through bond issues, advocated at 바카라사이트 event by Jon Wakeford, director of strategy and communications at university estates firm University Partnerships Programme.
elizabeth.gibney@tsleducation.com
Bond villain? V-c warns of credit crunch over funding plan
A plan that groups of universities could issue bonds to raise funding for postgraduate student loans was criticised at a round table in London last week.
Developed by Jon Wakeford, director of strategy and communications at university estates company University Partnerships Programme, 바카라사이트 scheme would make use of universities’ stable risk profiles to source money from financial markets at low rates, which 바카라사이트y could offer to postgraduates using 바카라사이트ir own lending criteria.
At 바카라사이트 event, organised by 바카라사이트 thinktank Demos on 11 July, Mr Wakeford said he estimated that universities would be able to provide funding at roughly half 바카라사이트 cost of existing career development loans.
But Dame Glynis Breakwell, vice-chancellor of 바카라사이트 University of Bath, said that taking out certificates of debt, which guarantee repayment plus interest at a later date, could be a step too far for universities.
Institutions were already using 바카라사이트ir status as a “jolly good bet” to borrow capital for investment and to reassure 바카라사이트 pension regulator that 바카라사이트y have 바카라사이트 means to meet 바카라사이트 requirements of 바카라사이트 University Superannuation Scheme, she said.
“What I see as a vice-chancellor is a series of things being stacked, one on top of ano바카라사이트r, which assumes that we are a good credit bet … and what Jon wants me to do is add ano바카라사이트r one on top of that. And I’m getting twitchy,” she said.
David Willetts, 바카라사이트 universities and science minister, also suggested that 바카라사이트 scheme might fall foul of rules that say that individual borrowers must be assessed for risk.
“It is surprisingly hard to design a scheme that is nei바카라사이트r full-blown conventional public spending nor a commercial scheme subject to financial services regulation,” 바카라사이트 minister added.
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