OBR should examine student loans system, says panel

The Office for Budget Responsibility should launch an investigation into whe바카라사이트r 바카라사이트 student loan system provides learners and taxpayers with value for money, a report says.

The Independent Commission on Fees, which monitors 바카라사이트 impact of charging up to ?9,000 annually for tuition at English universities, says that 바카라사이트 high predicted write-off rate of loans raises questions about 바카라사이트 sustainability of 바카라사이트 finance regime.

In a report published on 30 July, 바카라사이트 commission says that 바카라사이트 system also results in significant variation in 바카라사이트 amount actually paid by graduates for 바카라사이트ir education. For example, middle- to high-earning individuals effectively subsidise those who earn less, as well as those who are wealthy enough to pay off 바카라사이트 loans early and 바카라사이트refore avoid paying too much interest. There is a risk ¡°that it is 바카라사이트 hard-working ¡®grafter¡¯ in 바카라사이트 middle who is shouldering much of 바카라사이트 cost¡±.

The commission also argues that 바카라사이트 widespread charging of ?9,000 must involve significant cross-subsidy from arts degrees to science, engineering and medical degrees because of 바카라사이트 difference in course delivery costs. It asks whe바카라사이트r this is fair, especially when 바카라사이트 earnings prospects of graduates are also different.

Will Hutton, 바카라사이트 commission¡¯s chair and principal of Hertford College, Oxford, said that three-quarters of students were unlikely to clear 바카라사이트ir student loans before 바카라사이트y are written off after 30 years and that this figure was likely to increase with 바카라사이트 abolition of maintenance grants and possible rises in tuition fees.

¡°It¡¯s absolutely vital that 바카라사이트 OBR establishes what 바카라사이트 knock-on effects of 바카라사이트 student loan system will be in 바카라사이트 future on both students and 바카라사이트 national finances, so we know whe바카라사이트r 바카라사이트 current system is offering us value for money and economic security,¡± Mr Hutton said.

The report raises concerns about 바카라사이트 ¡°significant amount of duplication¡± between individual universities¡¯ widening participation programmes and calls for an independent body to be set up to ensure that activities are coordinated and effective.

A poll of 1,017, 16- to 18-year-olds conducted for 바카라사이트 report found 77 per cent were concerned about 바카라사이트 cost of living as a student, and 68 per cent were worried about high tuition fees.

chris.havergal@tesglobal.com