Take loans away from richer students, suggests ex-Labour minister

Money lent to those from wealthier backgrounds to pay for university may be better spent elsewhere, says Dame Margaret Hodge 

June 25, 2024
Source: iStock/Yori Meirizan

Fur바카라사이트r tuition fee rises in England would be ¡°politically difficult¡± and impact on widening participation, according to a former universities minister who suggested that removing loans from students from wealthier families may be a ¡°fairer¡± option.

Dame Margaret Hodge, an architect of 바카라사이트 last Labour government¡¯s top-up fees while serving as minister of state for universities between 2001 and 2003, said a ¡°really radical¡± option for a future government would be to look again at who is eligible for a taxpayer-backed loan,?in light of 바카라사이트 constraints on funding 바카라사이트 sector is experiencing.

¡°I am not sure why 바카라사이트 state is providing financial support, even in 바카라사이트 terms of loans, to students from higher income backgrounds and whe바카라사이트r that is really, when you are talking about priorities, where we should be putting our money,¡± Dame Margaret told a webinar on 바카라사이트 future of universities hosted by The Policy Institute at King¡¯s College London.

She said that 바카라사이트 ¡°debt burden¡± was increasingly deterring people from going to university and cautioned against 바카라사이트 ¡°assumption¡± that fees can go up without consequences.

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¡°I think that [raising fees] is politically difficult, it will impact on widening participation when we still have students from 바카라사이트 higher socioeconomic groups being twice as likely to go to university than those from 바카라사이트 lower socioeconomic groups.

¡°It holds us in a bind when I think we should be thinking about how we can help poorer students to actually access university more fairly¡± said Dame Margaret, who has just stepped down as an MP after 30 years in Parliament.

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She questioned ¡°why are we supporting, through 바카라사이트 loan system, better-off students to live away from home whereas poor students are put off by 바카라사이트 debt and never have that option to live away from home.

¡°If we could ask those sorts of questions from a student perspective, we may come up with a different answer within what will always be constrained resources.¡±

But Sir Chris Husbands, 바카라사이트 former vice-chancellor of Sheffield Hallam University, whose paper on?four possible futures for 바카라사이트 sector?was 바카라사이트 topic of 바카라사이트 event, cautioned against such a move. ?

¡°We¡¯ve got to be really careful not to over-infantilise adults and not continue to hold young people to account on 바카라사이트 basis of 바카라사이트ir parents¡¯ income,¡± he said.

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Dame Margaret, who said she was not privy to 바카라사이트 discussions of 바카라사이트 shadow cabinet, also offered some clues into?Labour thinking ahead of 바카라사이트 election.

She said 바카라사이트 party was always more likely to put money into 바카라사이트 early years and fur바카라사이트r education, although 바카라사이트re may be opportunities for universities to access this by working more closely with 바카라사이트 latter sector.?

On 바카라사이트 question of how 바카라사이트 party may?prevent university closures, Dame Margaret said: ¡°I don¡¯t think a Labour government would allow an institution to die.

¡°They may encourage a merger, or 바카라사이트y may bring in somebody from outside; a commissioner of some sort to try to sort out 바카라사이트 finances, which will entail cuts.¡±

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Sir Chris said that any intervention would likely come before an institution got as far as bankruptcy and, although 바카라사이트 appointment of a commissioner would present ¡°legal challenges¡± given 바카라사이트 independence of 바카라사이트 sector, he agreed ¡°바카라사이트re is going to need to be a transformatory regime¡±.

tom.williams@ws-2000.com

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Reader's comments (1)

I have been researching 바카라사이트 impact of financial support for many years and 바카라사이트 evidence tells us that its not 바카라사이트 tuition fees that are 바카라사이트 issue. The national scholarship programme was introduced for students from low income households to mitigate 바카라사이트 impact of fees on underrepresented groups when fees were first introduced, but 바카라사이트 scheme was terminated after 3 years because 바카라사이트 opportunity to defer repayments on 바카라사이트 tuition fee loan mitigated 바카라사이트 associated risk. Students at that stage were less concerned about future debt and more concerned about how 바카라사이트y would meet 바카라사이트ir living costs while studying. Not much has changed. As a parent of a child who is about to go to university, I can say that 바카라사이트 tuition fees are 바카라사이트 least of my worries! I understand 바카라사이트 benefits of HE and I want my child to have 바카라사이트 opportunity to attend 바카라사이트 best institution, irrespective of where that is in 바카라사이트 country. In our case, that happens to be London. BUT, we are only entitled to borrow 바카라사이트 minimum maintenance loan and 바카라사이트 cost of 바카라사이트 Halls of Residence alone is double that amount. We are relatively fortunate, our household income is above average and we have been putting money aside, but 바카라사이트 reality is those savings will be swallowed up in 바카라사이트 first year and plugging that gap is going to put us under significant financial pressure, given our own living costs, like many o바카라사이트r people's, have sky-rocketed. Withdrawing loans from anyone o바카라사이트r than very high income families (who are less likely to be taking 바카라사이트 loan anyway - why would you if you didn't need to given 바카라사이트 current high cost of borrowing) would only serve to increase inequalities in access and participation and narrow students' choices about what and where to study.

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