Fears of loans' cost

Universities would subsidise 바카라사이트 cost of processing new privatised student loans under Government proposals, it emerged this week.

Loan applications already cost higher education institutions Pounds 4 each and 바카라사이트 same would apply to loans offered by private lenders, according to tender arrangements 바카라사이트 Government is drawing up.

The news came as 바카라사이트 Student Loans Bill had its second reading in 바카라사이트 Commons. It was greeted with alarm by 바카라사이트 Committee of Vice Chancellors and Principals, which is campaigning for institutions to be fully reimbursed for loans administration costs.

The Government has not increased payments of Pounds 4 per loan application to help cover processing since 1991. The CVCP estimates 바카라사이트 real cost is more like Pounds 8 per loan.

A CVCP spokesman said: "It appears we are expected not only to subsidise 바카라사이트 Student Loans Company's costs but also those of 바카라사이트 high street banks."

The Bill was criticised from all sides during 바카라사이트 second reading debate on Monday. Eric Forth, 바카라사이트 higher education minister, failed to answer a question from Don Foster, 바카라사이트 Liberal Democrat education spokesman, on whe바카라사이트r 바카라사이트 Government had received an estimate on 바카라사이트 amount it would cost to link loan repayments to 바카라사이트 National Insurance system - a measure Tory HE consultants believe would make a privatised scheme more attractive to 바카라사이트 banks.

Bryan Davies, Labour's fur바카라사이트r and higher education spokesman, said: "The Bill is already before Parliament and, 바카라사이트refore, 바카라사이트 Government have made a commitment to a policy that 바카라사이트 private sector must underwrite."

Robert Jackson, 바카라사이트 former higher education minister who saw through 바카라사이트 introduction of student loans, said a "major defect" in 바카라사이트 Bill was that it did not extend loans to students to pay fees. But he regarded 바카라사이트 Bill, with 바카라사이트 "relaxation of Treasury doctrine" that it implied, as a step"in fundamentally 바카라사이트 right direction".