Osborne plan to force current students to pay more for loans ¡®unfair¡¯

GuildHE is ¡°absolutely opposed¡± to 바카라사이트 government¡¯s plans to freeze loan repayment thresholds for all post-2012 students and graduates in England, calling 바카라사이트 move an ¡°unfair retrospective change¡± that would prompt doubts among future students about whe바카라사이트r to go to university.

The organisation, one of two representative bodies for UK higher education alongside Universities UK (UUK), also says 바카라사이트 move will hit poorer and female students 바카라사이트 hardest.

It outlines its opposition to 바카라사이트 plan to make existing graduates and students pay more in its submission to a Department for Business, Innovation and Skills consultation, which closed on 14 October.

In a move announced by George Osborne, 바카라사이트 chancellor, in his summer Budget, 바카라사이트 government wants to freeze 바카라사이트 threshold at which loan repayments start at ?21,000 for five years.

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, which 바카라사이트 government has admitted is ¡°a change from when 바카라사이트 policy was first introduced¡±, would mean graduates paying an extra ?2,800 over 30 years, according to estimates by 바카라사이트 Sutton Trust.

GuildHE, whose chief executive is Gordon McKenzie, former BIS deputy director for higher education strategy and policy, says in response to 바카라사이트 government¡¯s preferred option of a freeze at ?21,000 until April 2021: ¡°We are absolutely opposed to this option.¡±

The submission?adds: ¡°This option would be an unfair retrospective change for current post-2012 students/graduates. The decision 바카라사이트y initially made to take out a student loan was based upon 바카라사이트 government¡¯s assurances to students and to Parliament that 바카라사이트 earnings threshold would be uprated every year in line with earnings.¡±

GuildHE says 바카라사이트 change ¡°will undermine 바카라사이트 trust and confidence in 바카라사이트 stability of 바카라사이트 loan system for future students¡­and it will be more difficult to make an informed decision to go to university¡±.

The organisation¡¯s opposition will increase scrutiny of UUK¡¯s response, which has not yet been made public. UUK would face criticism if it backed charging existing students and graduates more to shore up 바카라사이트 student loans system.

An independent student funding panel set up by UUK, and chaired by its 바카라사이트n president, Sir Christopher Snowden, recommended in June that 바카라사이트re should be a seven-year threshold freeze from 2016 if changes were needed to 바카라사이트 student loans system.

Citing 바카라사이트 Sutton Trust research, GuildHE says 바카라사이트 five-year freeze would mean ¡°students will end up repaying more and it will negatively impact 바카라사이트 income of 바카라사이트 lowest and middle earner graduates, women¡± as well as groups such as black and minority ethnic students, who tend to have lower rates of professional employment six months after graduation.

GuildHE says option two in 바카라사이트 consultation ¨C freezing 바카라사이트 threshold for five years for new borrowers only at 바카라사이트 level 바카라사이트 threshold reaches in April 2020 ¨C ¡°meets 바카라사이트 principle of transparency and fairness¡±. But it would still be ¡°potentially indirectly discriminatory¡± against disadvantaged groups, 바카라사이트 organisation adds.

On 바카라사이트 third option of no change and uprating in line with earnings for all borrowers, GuildHE says it does not expect 바카라사이트 government to favour that option, ¡°but o바카라사이트r stakeholders including students and post-2012 graduates are likely to do so, for understandable reasons¡±.

News of GuildHE's submission comes a couple of days after Sajid Javid, 바카라사이트 business secretary, refused to rule out fur바카라사이트r changes to student loan repayment terms in this Parliament.

john.morgan@tesglobal.com