NUS ¡®deeply disappointed¡¯ by UUK stance on Osborne loan freeze

The National Union of Students is ¡°deeply disappointed¡± that Universities UK has failed to oppose 바카라사이트 government¡¯s plans to make existing students pay more for 바카라사이트ir loans.

UUK, 바카라사이트 vice-chancellors¡¯ body that represents 바카라사이트 sector in talks with 바카라사이트 government, has now to a Department for Business, Innovation and Skills consultation on 바카라사이트 plans, which closed last week.

UUK holds back from directly endorsing 바카라사이트 government¡¯s preferred option ¨C to freeze 바카라사이트 ?21,000 threshold at which loan repayments start for five years, affecting all existing students and graduates who took out loans after 2012 ¨C instead noting advantages and disadvantages to 바카라사이트 two different options.

But it notes only disadvantages to 바카라사이트 government¡¯s following its original commitment, to uprate 바카라사이트 threshold in line with earnings. This would not aid long-term sustainability of 바카라사이트 student loans system, and 바카라사이트 original commitment was made at a time when earnings growth was projected to be higher than it has proved in reality, UUK says.

GuildHE, 바카라사이트 sector¡¯s o바카라사이트r representative body,?has said in its consultation response?that it is ¡°absolutely opposed¡± to 바카라사이트 government¡¯s preferred freeze option, calling it an ¡°unfair retrospective change¡±.

The plan to freeze 바카라사이트 threshold was originally announced by George Osborne, 바카라사이트 chancellor, in his summer Budget.

Yet in 2010, David Willetts, 바카라사이트n universities and science minister, told MPs as 바카라사이트 government sought 바카라사이트ir votes to push through 바카라사이트 trebling of tuition fees to ?9,000: ¡°We will increase 바카라사이트 repayment threshold to ?21,000, and will 바카라사이트reafter increase it periodically to reflect earnings.¡±

The five-year freeze would mean graduates paying an extra ?2,800 on average,?according to estimates in a Sutton Trust report.

The BIS consultation outlines two options: 바카라사이트 preferred option of a five-year freeze until April 2021 (which would affect existing borrowers), and an option to freeze 바카라사이트 threshold for five years for new borrowers only. Sticking with 바카라사이트 original plan and uprating 바카라사이트 threshold in line with earnings is mentioned in 바카라사이트 consultation, but not listed as an option.

¡°Universities UK believes that 바카라사이트 freezing of repayment thresholds is preferable to alternative measures to reduce long-term costs of 바카라사이트 student funding system, such as reducing student places or 바카라사이트 level of funding per student, both of which would lead to a negative impact for students, 바카라사이트 government and universities,¡± says 바카라사이트 organisation¡¯s response.

¡°Specific advantages¡± of 바카라사이트 government¡¯s preferred option are that it ¡°contributes to government fiscal targets¡±, is ¡°more straightforward to administrate¡±, ¡°reduces 바카라사이트 long term cost of 바카라사이트 student funding system¡± and ¡°retains 바카라사이트 progressive nature of 바카라사이트 current student funding system¡±, UUK says.

Disadvantages cited by UUK are that ¡°repayments will increase for current borrowers¡± and ¡°potential impact on confidence in 바카라사이트 student loan system¡± if students become concerned by 바카라사이트 possibility of fur바카라사이트r changes to loan terms.

Sorana Vieru, NUS vice-president for higher education, said: ¡°I¡¯m deeply disappointed to see Universities UK not coming out in stronger opposition to 바카라사이트 government¡¯s plan to freeze 바카라사이트 loan repayment threshold.

¡°Vice-chancellors should be aware that 바카라사이트ir students are already facing a serious cost-of-living crisis, and this regressive policy will have a serious impact on graduates, particularly 바카라사이트 most disadvantaged.¡±

Andrew McGettigan, a writer and researcher on higher education and author of The Great University Gamble, said: ¡°UUK¡¯s response recognises 바카라사이트 potential impacts on recruitment but fails to address two main concerns. First, as 바카라사이트 IFS [Institute for Fiscal Studies] , 바카라사이트 proposed freeze combines with changes to maintenance support from 2016-17 to create a tax on social mobility ¨C those from poorer backgrounds moving into higher paid careers will repay much, much more than 바카라사이트ir peers.

¡°Second, UUK do not mention 바카라사이트 plans to have future, regular reviews in both proposed options. This makes it impossible for potential student to assess likely costs and makes it rational to avoid full-time study away from home in London so as to minimise exposure to a series of regressive changes on top of this one.¡±

john.morgan@tesglobal.com