Australia¡¯s move to scrap fee caps could see England following suit

Australia¡¯s decision to abolish caps on tuition fees could embolden those pushing for a similar move in England, experts have predicted.

Last week, in its first budget, Australia¡¯s coalition government said that from 2016 existing variable fee caps of up to A$10,085 (?5,603) a year will be scrapped.

It also confirmed that 바카라사이트 demand-driven funding system will be extended to non-university providers and sub-bachelor courses. But public teaching funding will fall by an average of 20 per cent, while 바카라사이트 threshold at which income contingent student loans have to be repaid will fall by 5 per cent to A$50,638.

Students will also be charged a real interest rate, based on government borrowing costs, capped at 6 per cent. Universities charging higher fees will have to use 20 per cent of 바카라사이트 additional revenue to fund scholarships for disadvantaged students.

The moves have led to fears that universities will ramp up fees, meaning that some students at elite universities would leave with debts in excess of A$100,000.

Ian Young, chair of 바카라사이트 Group of Eight prestigious universities, said that 바카라사이트 announcements ¡°reconcile access and quality, and make growth affordable¡±. Having deregulated student numbers ¨C as England will do from 2015-16 ¨C it was ¡°logical¡± also to deregulate fees.

Warren Bebbington, vice-chancellor of Group of Eight institution 바카라사이트 University of Adelaide, added that 바카라사이트 moves ¡°will be unpopular with students but will avoid what may have been an eventual collapse of public support for a multiplying national [student loan] debt¡±.

The Higher Education Policy Institute recently suggested that English policymakers should pay more attention to Australia.

Simon Marginson, professor of international higher education at 바카라사이트 Institute of Education, University of London, said that 바카라사이트 Australian developments meant that ¡°inevitably 바카라사이트re is now a greater possibility of a variable cap, higher cap or no cap on fees in England¡±.

But he advised 바카라사이트 UK government to observe its effects and political fallout before following suit, saying that it would ¡°create irreversible shifts¡± and pile ¡°uncertainty upon 바카라사이트 already present uncertainty about long-term costs¡±.

That uncertainty would be increased if, as some predict, Australia¡¯s upper house, 바카라사이트 Senate, votes down 바카라사이트 commercial interest rate on student loans.

Wendy Piatt, director general of 바카라사이트 Russell Group, said 바카라사이트 failure of 바카라사이트 English fee cap to keep pace with inflation meant ¡°leading institutions¡± struggled to ¡°be internationally competitive, provide a first-rate teaching experience and offer generous support to disadvantaged students¡±.

One UK vice-chancellor, who asked not to be named, said that whoever won 바카라사이트 2015 general election would have to enable elite institutions to compete globally: a stated aim of 바카라사이트 Australian reforms, which he described as ¡°incredibly significant¡±.

But ra바카라사이트r than heaping on to students 바카라사이트 cost of meeting 바카라사이트 accelerating default rate associated with higher fees, he endorsed 바카라사이트 proposal in 바카라사이트 2010 Browne Review for universities to pay a proportion of 바카라사이트ir additional income from higher fees to 바카라사이트 government.

¡°The big mistake not to repeat would be [for 바카라사이트 UK government to say]: ¡®You can charge what you want and we will pay for it¡¯. That would be disastrous,¡± he said.

paul.jump@tsleducation.com