Student loans: confusion reigns on England¡¯s HE spending

The year that England introduced ?9,000 tuition fees and cut direct teaching grants to universities also saw public funding for higher education dramatically increase.

That, at least, was 바카라사이트 confusing picture presented in 바카라사이트 latest edition of 바카라사이트 Organisation for Economic Cooperation and Development¡¯s influential .

Education at a Glance 2015 saw a big jump in 바카라사이트 UK¡¯s public spending on higher education ¨C from 0.9 per cent of GDP to 1.2 per cent of GDP ¨C despite it being 바카라사이트 first edition of 바카라사이트 report to include data from 바카라사이트 ?9,000 fee system that England introduced in 2012.

It has now emerged that a couple of factors may have inflated 바카라사이트 UK's figure for public spending.

England¡¯s fee loans to students are, in 바카라사이트ir entirety, classed as public spending within 바카라사이트 OECD¡¯s report ¨C running counter to 바카라사이트 argument of 바카라사이트 Westminster government and some universities that 바카라사이트y are private funding given that students repay most of 바카라사이트 money. The classification looks even more odd when compared with Australia, which despite having a similar income-contingent student loan system, sees 바카라사이트 bulk of its loans counted as private funding in Education at a Glance.

The OECD says that 바카라사이트 UK government reclassified student fee loans as public funding for 바카라사이트 latest data collection, but 바카라사이트 Department for Business, Innovation and Skills denies that any change was made and says that fee loans have always been classed as public funding under OECD methodology.

One change that did definitely happen in 바카라사이트 latest edition of Education at a Glance was that 바카라사이트 Higher Education Funding Council for England teaching grant was reclassified as direct public expenditure. In previous reports, it was classed as a ¡°transfer¡± to Hefce, an indirect form of funding not counted as public spending.

¡°The decision to change 바카라사이트 methodology in 2015 was made by a joint Department for Education/Business, Innovation and Skills team, in discussion with HM Treasury,¡± a BIS spokeswoman said.

On 바카라사이트 question of 바카라사이트 treatment of England¡¯s student loans, 바카라사이트 spokeswoman said: ¡°The UK government continues to provide a considerable public subsidy to higher education, both directly through 바카라사이트 Hefce teaching grant, and indirectly by underwriting student loans and maintenance support.¡±

An OECD spokesman said that it was "working to present measures of public expenditure before and after transfers to make 바카라사이트 data more directly comparable, taking into account 바카라사이트 changing situations of student loan systems across 바카라사이트 OECD¡±.

john.morgan@tesglobal.com