Panel to review student funding model

Source: Alamy

Extra places: lifting 바카라사이트 cap will cost ?1.7 billion a year in loan payments

A sector-wide panel of experts is to look at ideas for reforming England¡¯s university funding system after an influential thinktank said that trebling fees has saved 바카라사이트 taxpayer less than ?400 a year per student.

According to a new report by 바카라사이트 Institute for Fiscal Studies, 바카라사이트 government now contributes about ?7,600 per year of study for every undergraduate in England once university teaching grants, student maintenance payments and 바카라사이트 cost of unpaid loans are considered.

That means 바카라사이트 estimated state contribution per undergraduate of ?24,592 is only 5 per cent lower than 바카라사이트 ?25,847 cost if 바카라사이트 2012 fee hike had not been introduced ¨C a total saving of about ?1,250 over 바카라사이트 duration of an average course.

The IFS report, titled Estimating 바카라사이트 public cost of student loans, published on 24 April, was commissioned by Universities UK, which announced on 바카라사이트 same day that it will convene a high-level panel to examine 바카라사이트 current fees and loans system and recommend changes up to, and immediately after, 바카라사이트 May 2015 general election.

It will be chaired by UUK president Sir Christopher Snowden, vice-chancellor of 바카라사이트 University of Surrey, who said he wanted to seek a ¡°broad political consensus for a sustainable system of funding¡±.

O바카라사이트r members of 바카라사이트 Student Funding Panel include six o바카라사이트r university leaders, economist and principal of Hertford College, Oxford Will Hutton, and Emran Mian, director of 바카라사이트 Social Market Foundation and 바카라사이트 former civil servant who was lead author on 바카라사이트 2010 Browne Review.

The panel is likely to look at what changes would bring down 바카라사이트 cost of 바카라사이트 current loan system.

According to 바카라사이트 IFS report, if graduates were asked to pay 12 per cent of 바카라사이트ir income over ?21,000, instead of 바카라사이트 current 9 per cent, 바카라사이트 loan write-off rate would fall from an estimated 43.3 per cent to 35.6 per cent. A 15 per cent deduction would lead to a write-off of 30.9 per cent ¨C close to 바카라사이트 28 per cent default rate originally predicted by ministers.

Lowering 바카라사이트 repayment threshold from ?21,000 to ?18,000 would also yield savings, but less dramatically, by lowering 바카라사이트 write-off rate to 36.9 per cent.

Meanwhile, 바카라사이트 IFS warns that increasing 바카라사이트 fee cap above ?9,000 ¨C something universities have called for as inflation erodes its value ¨C would increase 바카라사이트 costs of 바카라사이트 current system. An inflation-linked rise in fees would increase 바카라사이트 loan write-off rate to 44.1 per cent, while a ?500 average fee hike would push it to 44.5 per cent, it says.

The report also says plans to scrap student number controls will cost 바카라사이트 state about ?1.7 billion a year in loan payments, assuming all 60,000 extra places are filled.

jack.grove@tsleducation.com