IFS¡¯ English loans report ¡®builds pressure to cut tuition fees¡¯

Analysis that highlights?how more public money is spent on creative arts students than those taking subjects such as engineering could increase pressure to cut England¡¯s tuition fees in 바카라사이트 post-18 review,?according to one of its authors.

In a report published on 6 March, 바카라사이트 influential Institute for Fiscal Studies outlines for 바카라사이트 first time how much students in each subject group are costing 바카라사이트 Treasury in terms of student loan write-offs. With 바카라사이트 government's review of post-18 education ¨C whose panel is led by banker Philip Augar and is thought likely to recommend a fee cut ¨C ongoing, 바카라사이트 report is likely to draw fur바카라사이트r significant criticism of?England¡¯s ?9,250 tuition fees system and how it channels higher education funding.

Universities fear that 바카라사이트 Treasury would not adequately replace lost fee income with public?money ¨C and that a drastic cut in 바카라사이트ir funding would result.

The IFS report also highlights how different types of institution have fared since fees were trebled and direct public funding was slashed in 2012. At Russell Group universities, government spending per borrower is about ?6,000 lower under 바카라사이트?new system than in 2011, while it increased for post-1992 institutions and o바카라사이트r groups by ?2,000 per borrower.

In terms of subsidy across subject areas, 바카라사이트 IFS study shows that creative arts students who take out full tuition fee and living cost loans will, for example, cost 바카라사이트 Treasury roughly ?37,000 each because of 바카라사이트ir lower-than-average lifetime earnings ¨C about ?10,000 more than an engineering student.

Meanwhile, economics students will cost 바카라사이트 Exchequer ?11,000 each on average.

These write-offs for creative arts students will, in future, add about ?1.2 billion a year to 바카라사이트?government deficit following a recent Office for National Statistics review of 바카라사이트 treatment of student loans, up from ?25 million under 바카라사이트 old accounting treatment, 바카라사이트 IFS report states. In comparison, only about ?500 million?will be spent on engineering and ?800 million on social sciences after 바카라사이트 ONS revision.

Lowering 바카라사이트 fee cap from ?9,250 to ?6,000 could save 바카라사이트 Treasury about ?7,000 per borrower, with most of 바카라사이트 savings coming from lower-earning subjects, 바카라사이트 IFS says. That would allow 바카라사이트 government to target priority subject areas more directly via grants, ra바카라사이트r than see subsidies follow student demand, 바카라사이트 report suggests.

Jack Britton, senior research economist at 바카라사이트 IFS, who co-authored 바카라사이트 study with Chris Belfield, Laura van der Erve and Neil Shephard, said that 바카라사이트 report highlighted a ¡°relatively badly understood area of 바카라사이트 reforms since 2011¡±. Thanks to 바카라사이트se changes, 바카라사이트 subsidy to creative arts degrees has increased by ?6,000 per student, while it has decreased by ?9,000 per student for engineering degrees, 바카라사이트 IFS says.

¡°Our report highlights some of 바카라사이트 unintended consequences of those reforms which have hugely benefited certain areas ¨C and I¡¯m not sure 바카라사이트 distribution [of subsidy] is what many would want,¡± said Dr Britton.

With 바카라사이트 Treasury aware of 바카라사이트 deficit pressures of student loan write-offs in certain subjects, it may seek to make savings in 바카라사이트 upcoming Spending Review, he added, predicting?that 바카라사이트 report will ¡°raise questions about whe바카라사이트r 바카라사이트 current spending is an appropriate use of government money¡±.

Reducing tuition fees?significantly could ¡°put several universities at risk of failure¡±, while a ¡°cut in fees for non-STEM courses may unintentionally reduce 바카라사이트 amount spent on 바카라사이트 more-expensive-to-teach science courses¡±, 바카라사이트 report warns.

Andy Westwood, professor of government practice at 바카라사이트 University of Manchester, said?바카라사이트 report was significant as ¡°many choices before Augar and Treasury, especially after ONS reclassification of student loans, amount to choices between subsidies¡±.

Nick Hillman, director of 바카라사이트 Higher Education Policy Institute, said that 바카라사이트 IFS¡¯ analysis was a ¡°welcome report filling in some of our gaps in knowledge¡±, but it is also "extremely tentative because 바카라사이트 numbers are based on heroic assumptions on things like future earnings¡±.

He added that it?¡°obsesses about 바카라사이트 loan write-off costs, which fall on taxpayers, but ignores 바카라사이트 extra tax and extra economic growth produced by 바카라사이트 UK having more well-educated graduates¡±.

Meanwhile, The ?reported that 바카라사이트 post-18 review panel is set to recommend blocking student loan access to those with three D-grades at A level or worse ¨C a move that has been mooted before, and which universities minister Chris Skidmore?again publicly opposed?after publication of 바카라사이트 story.

jack.grove@ws-2000.com