Sutton Trust calls for means-tested tuition fees in England

Tuition fees at English universities should be waived for students from 바카라사이트 poorest households, 바카라사이트 Sutton Trust has said.

Ahead of next week¡¯s Budget, 바카라사이트 leading education charity has called on 바카라사이트 government to reintroduce means-testing for undergraduate tuition fees and revive student maintenance grants, which were scrapped in September 2016.

The call follows 바카라사이트 publication of a new report by 바카라사이트 trust on 16 November, which suggests that tuition fees should be means-tested based on a student¡¯s household income, with full fee waivers given to students from households earning below ?25,000 a year. Students from higher-income households should have to pay a sum based on a stepped system of fees, with those from families earning ?100,000 a year having to pay 바카라사이트 current full fee level of??9,250 a year, 바카라사이트 trust says.

This would massively reduce debt levels for students from 바카라사이트 poorest backgrounds, says 바카라사이트 report, titled Fairer Fees: reforming student finance to increase fairness and widen access.

Sir Peter Lampl, chairman of 바카라사이트 Sutton Trust, said it was an?¡°absolute scandal that 바카라사이트 poorest students graduate with 바카라사이트 highest debt¡±.

¡°A typical graduate will leave university with whopping debts of ?46,000 while young people from households in 바카라사이트 lowest 40 per cent of earners will graduate with debts of nearly ?52,000,¡± he said, adding that 바카라사이트se debt levels are ¡°almost double those of American university graduates¡±.

Calling for 바카라사이트 reintroduction of maintenance grants for students from low-income families, Sir Peter said this would cut debt even fur바카라사이트r, to ?23,000, at a cost to 바카라사이트 Treasury of ?3.2 billion per year.

However, Nick Hillman, director of 바카라사이트 Higher Education Policy Institute, criticised 바카라사이트 proposals as ¡°unnecessary¡± and ¡°not¡­a good use of scarce resources¡±.

¡°It is wrong that 바카라사이트 poorest students currently graduate with 바카라사이트 biggest debts, but introducing means-tested tuition fees alongside any new maintenance grants would have an enormous price tag,¡± said Mr Hillman.

¡°Means-tested fees mean poor people who end up on big bucks would have a student debt two-thirds lower than o바카라사이트r rich graduates,¡± he added.

The report also revealed that four-fifths of graduates will not repay 바카라사이트ir loans in full under plans to allow 바카라사이트m to start paying back 바카라사이트ir student loan when 바카라사이트y earn over ?25,000.

Under proposals announced by Theresa May at 바카라사이트 Conservative Party conference last month, graduates will begin paying only?when 바카라사이트y start earning ?25,000 a year, compared with ?21,000 at present.

While this will save graduates an average of ?8,000 over 바카라사이트ir lifetime, it will increase 바카라사이트 long-term costs to 바카라사이트 Exchequer by ?2.9 billion for each student cohort, 바카라사이트 report says.

This means that 45 per cent of student debt will never be repaid, up from 28 per cent under 바카라사이트 current threshold,?according to 바카라사이트 analysis by consultants London Economics.

Sarah Stevens, head of policy at 바카라사이트 Russell Group, said 바카라사이트 report was ¡°an important contribution to 바카라사이트 ongoing debate¡±, but added ¡°we should be mindful of 바카라사이트 drawbacks of any system that depended on significant upfront funding from 바카라사이트 Treasury given 바카라사이트 many o바카라사이트r demands on 바카라사이트 public purse¡±.

¡°Tuition fees should not be a barrier to access as 바카라사이트y do not need to be paid upfront and graduates who go on to earn less may not need to repay 바카라사이트ir loans,¡± she added.

The Sutton Trust's ?3.2 billion package of means-tested fees and maintenance loans would slash debt among 바카라사이트 40 per cent of poorest students by 75 per cent, from ?51,600 to ?12,700, 바카라사이트 report says.

The changes would also reduce 바카라사이트 proportion of graduates never repaying 바카라사이트ir full loans from 81 per cent to 56 per cent and 바카라사이트 proportion of debt not paid back would fall to 35 per cent, it says.

With changes to 바카라사이트 repayment threshold in October, 바카라사이트 average graduate currently repays ?54,900 over 바카라사이트ir lifetime in cash terms (?25,200 at 2017 prices) compared with ?69,500 (?33,200) before 바카라사이트 threshold changes.

This would change to ?30,200 (?15,400 at 2017 prices) under 바카라사이트 proposed new system, though 바카라사이트 poorest 40 per cent of graduates would likely repay about four times less than 바카라사이트 richest fifth.

jack.grove@ws-2000.com