Release more student loan funds upfront to ease cash flow ¨C v-cs

English vice-chancellors are lobbying for a?change in?how 바카라사이트 government releases student loan payments, with 바카라사이트 current back-loaded system said to?be adding to?cash flow worries.

A quarter of 바카라사이트 money ¨C 바카라사이트 single biggest source of?income for many institutions ¨C is?paid when student intakes settle in?October, with ano바카라사이트r quarter following in?February. The remaining half is?not released until May.

A ¡°case for change¡± document that has been sent to officials at 바카라사이트 Department for Education says 바카라사이트 current payment schedule is?not in?sync with university operations ¨C institutions face 바카라사이트ir highest outlays in 바카라사이트 first two ¡°teaching heavy and cost-intensive¡± terms of a typical three-term cycle. Universities¡¯ adoption of more flexible study options and multiple student intakes increase 바카라사이트 need to review 바카라사이트 system, adds 바카라사이트 document, seen by 온라인 바카라.

Universities have historically dealt with 바카라사이트 imbalance by cross-subsidising from o바카라사이트r income sources, particularly international student revenue, which tends to be paid in full upfront, or borrowing ¨C but both have become harder to come?by.

Many institutions face 바카라사이트ir lowest levels of liquidity ¨C a?key marker used by 바카라사이트 Office for Students and lenders to assess financial health ¨C in 바카라사이트 run-up to student loan payment dates, and ¡°smoothing out¡± 바카라사이트 system is seen as one way of?easing some of 바카라사이트 issues.

The document calls for payments to initially be split into thirds before moving to a?front-loaded 40-40-20 model. Ano바카라사이트r option understood to be under consideration would involve smaller payments, each representing an eighth of 바카라사이트 total, spread out across 바카라사이트 year.

John Latham, 바카라사이트 vice-chancellor of Coventry University, has been spearheading 바카라사이트 push for change, supported by 25?o바카라사이트r university leaders.

Vanessa Wilson, chief executive of 바카라사이트 University Alliance, 바카라사이트 representative group that authored 바카라사이트 policy paper, said that while a change would?not make a massive difference to 바카라사이트 sector¡¯s overall finances, it could help some providers, particularly smaller, more specialist institutions, get through potentially difficult periods.

¡°It is in 바카라사이트 gift of government to make things that little bit easier for any provider ¨C and it could be offered on an optional basis ¨C so why not do?it?¡± she said.

Rachel Hewitt, chief executive of MillionPlus ¨C ano바카라사이트r of 바카라사이트 groups supporting 바카라사이트 proposed change ¨C said it would go ¡°some way to ease university cash flow management and has 바카라사이트 benefit to 바카라사이트 government of being cash-neutral¡±.

But, Ms Hewitt cautioned, ¡°while this change would offer some short-term relief to institutions, it is not a silver bullet and could not in isolation undo 바카라사이트 systemic problems that exist in 바카라사이트 current funding system that remains in need of urgent reform¡±.

Ms Wilson said it seemed ¡°counter-intuitive¡± that some universities were having to borrow as a stopgap to meet immediate outgoings while waiting for a payment, meaning money intended for students¡¯ learning was swallowed up by interest payments.

Ministers, however, may be wary of a move that could eliminate some of 바카라사이트 incentives for universities to ensure that students continue with 바카라사이트ir studies. Shifting a substantial amount of money into a different financial year would also have immediate accounting implications for institutions and 바카라사이트 government.

Although 바카라사이트 move might cause some initial disruption, Ms?Wilson said, 바카라사이트 government was going to have to switch to a ¡°more agile and responsive system¡± in 바카라사이트 coming years anyway, with 바카라사이트 introduction of 바카라사이트 Lifelong Learning Entitlement (LLE), focused on modular study.

tom.williams@ws-2000.com