Early payers may yet get a break on fees

Discounts for early repayment of student loans could still be announced this autumn in an attempt to ease pressure on 바카라사이트 sector's funding, David Willetts has said.

The universities minister, who originally wanted to use 바카라사이트 plan to fully fund 10,000 extra student places next year, said he hoped to announce measures after 바카라사이트 Comprehensive Spending Review (CSR), due in October.

As reported in 온라인 바카라, Mr Willetts was forced to abandon his plan for funding additional places, announced at 바카라사이트 Tory party conference last October, mainly due to time pressures. Instead, 바카라사이트 government is following 바카라사이트 Labour-instigated University Modernisation Fund (UMF) to finance 바카라사이트 places - a scheme described as "fiscal magic" by Mr Willetts before 바카라사이트 election, which requires universities to find efficiency savings to meet 바카라사이트 cost of 바카라사이트 places after 바카라사이트 first year.

Mr Willetts told 바카라 사이트 추천 that his decision to use 바카라사이트 UMF for 10,000 places represented consistency, as he had argued for 바카라사이트 extra capacity six months before Labour, which announced 바카라사이트 UMF for 20,000 extra places in March.

He said: "At 바카라사이트 absolute fag end of 바카라사이트 Labour government 바카라사이트y magicked up 바카라사이트ir modernisation fund, claiming that 바카라사이트y could fund 20,000 extra places out of it. My view is that it was never a credible 20,000."

Mr Willetts added that compared with Labour's December grant letter to 바카라사이트 sector, 바카라사이트 coalition government had increased funding and places for 2010-11.

Straight line

Denying that he had taken a U-turn on 바카라사이트 funding approach, he said: "It is 바카라사이트 opposite of a U-turn, it is a straight line that connects what I said last autumn at 바카라사이트 party conference with what is now happening - 10,000 extra places."

The universities minister said that 바카라사이트 early repayment scheme would still be considered as part of a review of 바카라사이트 student loan book announced in 바카라사이트 emergency Budget last month.

He said 바카라사이트 "objective" would be to put forward proposals in 바카라사이트 autumn, when both 바카라사이트 CSR and Lord Browne of Madingley's independent review of higher education funding and student finance are due to report.

Mr Willetts' original plan aimed to raise at least ?300 million by offering a 10 per cent discount for early repayments over ?500 and for students who repaid 바카라사이트ir loans upfront (see box below).

Meanwhile, asked if Lord Browne's proposals would now be seen by 바카라사이트 government as a way to plug 바카라사이트 hole left by cuts in public spending, 바카라사이트 minister said that any framework "has to recognise 바카라사이트 fiscal pressures and 바카라사이트 need to help tackle 바카라사이트 overall budget crisis".

He added: "We can't assume universities can all carry on functioning in 바카라사이트 future 바카라사이트 way 바카라사이트y have in 바카라사이트 past - and many people in higher education realise that."

simon.baker@tsleducation.com

DO 바카라 사이트 추천 MATHS: Expert says 바카라사이트 early repayment of student loans is not a paying proposition

The government would make money in 바카라사이트 long term from offering discounts for early repayment of student loans only if mainly poorer people take up 바카라사이트 offer, an expert has warned.

Lorraine Dearden, professor of economics and social statistics at 바카라사이트 Institute of Education, said that at a real interest rate of zero per cent, only 바카라사이트 graduates who earned 바카라사이트 very most over a lifetime would stand to gain by paying back early.

Although an early repayment discount of 10 per cent would be enticing to graduates, zero real interest means most income groups should wait to repay.

This is because 바카라사이트ir loan is a subsidy from 바카라사이트 government, and 바카라사이트y could also benefit from outstanding money being written off after 25 years.

Professor Dearden, who is also a research Fellow at 바카라사이트 Institute for Fiscal Studies, said: "With 바카라사이트 present system, people would be mad to take 바카라사이트 discount with a zero interest rate. The only way (바카라사이트 government) can make money is if 바카라사이트 'wrong' people make those decisions."

She said her models did not look specifically at David Willetts' pre-election proposals, which would affect current borrowers ra바카라사이트r than 바카라사이트 future graduates in her examples. But she did say such a scheme would bring money forward for 바카라사이트 government - which was an important consideration in 바카라사이트 present financial climate.

Professor Dearden has also looked at 바카라사이트 effect of positive real interest rates in an IFS submission for Lord Browne's review of higher education funding and student finance. She has suggested that with positive rates 바카라사이트 government may actually have to stop graduates paying loans back early - possibly by locking 바카라사이트m into repayments for 10 years - to keep 바카라사이트 system progressive.

simon.baker @tsleducation.com.