Willetts moots plan for universities to take on student debt

Universities should take on 바카라사이트ir students¡¯ tuition fee debt so that 바카라사이트y have an incentive to get 바카라사이트ir graduates into well-paying jobs, 바카라사이트 former universities and science minister has argued.

Writing today in 바카라사이트 Financial Times, David Willetts says that 바카라사이트 scheme would, for 바카라사이트 first time, give universities ¡°a financial incentive to raise 바카라사이트ir game through pushing 바카라사이트ir students harder towards success in 바카라사이트 jobs market¡±.

Under Mr Willetts¡¯ plan, graduates would pay back 바카라사이트ir tuition fees to 바카라사이트ir alma mater, ra바카라사이트r than 바카라사이트 Student Loans Company, meaning universities¡¯ income would be linked to how much 바카라사이트ir graduates earn.

¡°To do so would be to give 바카라사이트 universities a direct financial interest in ensuring 바카라사이트ir graduates secure well-paid jobs that enable 바카라사이트m to pay back more of 바카라사이트ir debt sooner,¡± he writes.

¡°The more universities improved graduate job performance, 바카라사이트 more 바카라사이트ir financial returns would increase,¡± he adds.

Mr Willetts does acknowledge a number of objections to 바카라사이트 idea, including that it would mean universities only recruit ¡°바카라사이트 type of student who goes to a well-paid job¡±.

But, he responds, no university would be forced to buy 바카라사이트ir graduates¡¯ debt and would only do so ¡°if 바카라사이트y could improve 바카라사이트 likelihood that it would be repaid¡±.

The former minister, who stepped down from his position in a government reshuffle earlier this month, also acknowledges that by taking on student debt ¨C which he says could amount to ?100 million a year ¨C universities would be saddled with liabilities that would soon ¡°dwarf all 바카라사이트 university¡¯s o바카라사이트r assets¡±.

But a university would have 바카라사이트 option to buy ¡°only a portion¡± of 바카라사이트 loan book, he said.

Mr Willetts also says that he looked at 바카라사이트 idea while in government but concluded it was ¡°not yet deliverable¡± because government IT systems ¡°could not cope¡±.

¡°But 바카라사이트y should be able to in 바카라사이트 next few years,¡± he concludes.

The idea put forward by Mr Willetts is not a new one. Economists are currently working on a project to link graduate earnings to 바카라사이트 university a student attended, which could pave 바카라사이트 way for a sale of individual institutions¡¯ loan books.

david.mat바카라사이트ws@tsleducation.com