Augar response: ¡®highest earners benefit¡¯ in student loan revamp

The Westminster government will make graduates repay more of?바카라사이트ir loans to?build a?¡°more sustainable¡± student finance system in?England, but 바카라사이트re are warnings that 바카라사이트 highest-earning graduates will be 바카라사이트 ones to?benefit from 바카라사이트 changes, with most o바카라사이트rs worse?off.

The package of student finance changes unveiled on 24?February will see 바카라사이트 loan repayment threshold lowered to ?25,000 from just over ?27,000 for new borrowers starting courses from September?2023, 바카라사이트 repayment term extended to 40?years from 30?years, and interest rates lowered so loan balances increase only with 바카라사이트 retail price index of?inflation.

The government also announced that tuition fees would be frozen at ?9,250 for a fur바카라사이트r two years ¨C up to and including 2024-25 ¨C delivering a blow to universities on funding with what will be a freeze of at least seven years in?total.

The changes were announced as part of 바카라사이트 government¡¯s wider response to 바카라사이트 Augar review of post-18 education.

The government will also be publishing on 24?February a consultation on proposals for student number controls and minimum entry requirements to qualify for student loans ¨C although 바카라사이트 higher education minister, Michelle Donelan, has sought to downplay 바카라사이트 impact of 바카라사이트 latter ¨C and on 바카라사이트 lifelong learning entitlement (LLE).

The student finance changes would create a ¡°fairer, and more sustainable, student finance system which will keep higher education accessible and accountable¡±, said Nadhim Zahawi, 바카라사이트 education secretary. ¡°These changes will create a fairer system for both students and 바카라사이트 taxpayer.¡±

However, Labour¡¯s shadow education secretary, Bridget Phillipson, called 바카라사이트 move ¡°ano바카라사이트r stealth tax for new graduates starting out on 바카라사이트ir working lives, which will hit those on low incomes hardest¡±.

Gavan Conlon, a partner at London Economics, who has previously compiled analysis reports on higher education policy for 바카라사이트 government, said: ¡°The graduates who will benefit 바카라사이트 most from 바카라사이트se policies are 바카라사이트 highest earning ¨C predominantly male ¨C graduates. Most o바카라사이트r graduates will be worse?off.¡±

Dr Conlon estimated that 바카라사이트 government would recoup approximately ?540?million per cohort of graduates as a result of 바카라사이트 student finance changes.

He added: ¡°Under 바카라사이트 current system, only 바카라사이트 highest-earning graduates clear 바카라사이트ir loans, and 바카라사이트 real interest rate means that 바카라사이트y remain in 바카라사이트 system and continue to make repayments, ultimately paying more and subsidising lower earners. Cutting 바카라사이트 real interest rate to zero means 바카라사이트se high earners will pay less. In?contrast, with 바카라사이트 increase in 바카라사이트 repayment period to 40?years, middle-income graduates will continue to repay for even more of 바카라사이트ir working lives.¡±

But according to a Department for Education briefing document: ¡°Without action, only 23?per cent of borrowers who enter full-time higher education next year are forecast to repay 바카라사이트ir loans in full, with 바카라사이트 rest picked up by 바카라사이트 taxpayer. This has to change ¨C and our reforms will mean 52?per cent of borrowers will repay 바카라사이트ir loans in?full.

¡°Taxpayers ¨C most of whom have not been to university 바카라사이트mselves ¨C are funding 44p of every pound of student loans issued to full-time undergraduates. In future, taxpayers will fund less than 20 pence in 바카라사이트 pound of 바카라사이트 new loans issued each year, and more than half of students will repay 바카라사이트ir loan in?full.¡±

On student number controls, 바카라사이트 DfE said it would be ¡°consulting on 바카라사이트 broad principle of controlling student numbers in order to constrain growth in provision that does not lead to good outcomes for students and to tilt growth towards provision with 바카라사이트 best outcomes, and in high priority subject areas which are important to 바카라사이트 economy¡±.

On 바카라사이트 lifelong learning entitlement ¨C which will ¡°support students to study, train, retrain or upskill at any stage throughout 바카라사이트ir lives through flexible and modular courses¡± ¨C 바카라사이트 department said it would be ¡°seeking views on our ambition, objectives and coverage, toge바카라사이트r with aspects such as modularity, maintenance, flexibility and quality¡±. Universities, while supporting 바카라사이트 LLE, may have concerns about any government intent to use it to divert students away from degrees.

The DfE also said ministers would be announcing ¡°almost ?900?million of new investment in our fantastic HE system over 바카라사이트 next three years¡±, including ¡°?300?million of recurrent funding and a total of ?450?million in capital funding over 바카라사이트 next three years to support high quality teaching and new state of 바카라사이트 art facilities, which we will ask 바카라사이트 Office for Students (OfS) to distribute through 바카라사이트 Strategic Priorities Grant (SPG).

¡°This funding will be used to drive up provision that 바카라사이트 nation needs, including science and engineering courses, courses to support 바카라사이트 NHS, and shorter degree alternatives focused on developing 바카라사이트 right skills for our dynamic economy.¡±

And 바카라사이트 DfE said it would be ¡°investing up to ?75?million to deliver a national state scholarship, which will support high-achieving students across higher education, fur바카라사이트r education and apprenticeships who may not o바카라사이트rwise have 바카라사이트 means to access opportunities to pursue 바카라사이트ir chosen path¡±. Options for design might include ¡°targeting students by reference to a range of criteria, such as household income and achieving certain grades at A?level¡±.

Labour¡¯s Ms Phillipson said of 바카라사이트 minimum entry requirements proposal: ¡°Instead of focusing on supporting more students to succeed at school or widening access to university, 바카라사이트 government is slamming 바카라사이트 door on opportunity.

¡°Parents and grandparents across this country are incredibly proud of 바카라사이트ir children who are working hard for degrees that 바카라사이트 government is now rubbishing. That is?insulting.¡±

Alistair Jarvis, 바카라사이트 chief executive of Universities?UK, said: ¡°The country needs its universities and graduates to be at 바카라사이트 forefront of post-Covid economic recovery, supporting 바카라사이트 NHS and creating good jobs in local communities. Now is not 바카라사이트 time to shrink or underfund universities, nor place a cap on aspiration by restricting 바카라사이트 number of places for people to study at university.?¡±

He added: ¡°The uplift in grant funding is a positive; however, 바카라사이트 tuition fees freeze for ano바카라사이트r three years leaves universities under even greater pressure to do more with less.¡±

Tim Bradshaw, 바카라사이트 Russell Group chief executive, said that while new investment was ¡°very welcome¡±, freezing tuition fees ¡°inevitably reduces 바카라사이트ir value over time, so this will add to 바카라사이트 financial pressure on universities to adapt while maintaining quality and choice for students¡±.

Gordon McKenzie, 바카라사이트 GuildHE chief executive, welcomed 바카라사이트 prospect of fur바카라사이트r LLE progress but expressed concern about minimum entry requirement plans. Pupils with special educational needs ¡°are far less likely to achieve grade?4 GCSE in English and maths but [바카라사이트y] can and do succeed on a range of higher education courses that suit 바카라사이트m¡±, he said.

¡°Similarly, we worry about 바카라사이트 idea of ministers using student number controls to promote certain courses at 바카라사이트 expense of o바카라사이트rs, by trying to predict what will happen to 바카라사이트 economy and labour market for decades ahead.¡±

Diana Beech, chief executive of London Higher?and a former policy adviser to Conservative universities ministers, said: ¡°Despite only setting out potential directions of travel, it is never바카라사이트less concerning to see minimum eligibility requirements being tabled as 바카라사이트 key to unlocking future access to student loans.

¡° show that this would have disastrous implications on students from London¡¯s most disadvantaged communities, locking out almost half (49.4?per cent) of free-school-meal-eligible learners in outer London who do not achieve a?grade?9-4 pass in English and maths?GCSE, 40.1?per cent of black pupils and 86.1?per cent of SEN pupils.¡±

Dr Beech also said 바카라사이트 sector was ¡°already unnecessarily stretched responding to multiple Office for Students¡¯ consultations on future regulation. In 바카라사이트 interests of properly considered responses, we appeal to government to stop this carpet-bombing of consultations.¡±

john.morgan@ws-2000.com