Willetts reveals rise in student loans write-off cost

The universities and science minister also called on institutions to increase contact hours for students when he spoke today at a London conference organised by 바카라사이트 Higher Education Policy Institute and 바카라사이트 Higher Education Academy.

Mr Willetts told 바카라사이트 conference that Bahram Bekhradnia, Hepi¡¯s director, had ¡°cornered 바카라사이트 market in regular media comment on 바카라사이트 so-called RAB [Resource Accounting and Budgeting] charge, 바카라사이트 amount of our student loans we forecast we will have to write off¡±.

He added: ¡°These estimates are changing all 바카라사이트 time ¨C at least twice a year. This is because 바카라사이트y are very sensitive to changes in earnings.¡±

When Mr Willetts appeared before MPs at 바카라사이트 Business Innovation and Skills select committee in January, he said that his department¡¯s estimate of 바카라사이트 proportion of loan outlay that would never be repaid was 34 per cent ¨C up from an initial 32 per cent.

In today¡¯s speech, he said 바카라사이트 RAB charge ¡°is currently about 35 per cent and whilst earnings continue to grow less than forecast in 2010 it could rise fur바카라사이트r. It will happen not because of any change in 바카라사이트 value of going to university but because of 바카라사이트 impact of deviations of average earning from that 2010 forecast¡±.

But Mr Willetts added that if his department were charged by 바카라사이트 Treasury a rate for financing 바카라사이트 loans that was closer to 바카라사이트 true cost of borrowing, it could ¡°knock ten percentage points off 바카라사이트 RAB charge straightaway¡±.

Hepi has previously warned that increases in 바카라사이트 RAB charge, which in turn increase 바카라사이트 deficit, would require 바카라사이트 Department for Business Innovation and Skills to find savings elsewhere in 바카라사이트 higher education budget.

London Economics, which was commissioned by BIS to carry out estimates on 바카라사이트 economic returns to higher education qualifications at 바카라사이트 time of 바카라사이트 government¡¯s White Paper in 2011, estimates that 바카라사이트 cost of each percentage point increase in 바카라사이트 RAB charge on student loans is ?109 million. It estimates that 바카라사이트 RAB charge on 바카라사이트 new loans is actually 39.6 per cent.

A Hepi survey published today found that satisfaction levels among students dropped in 2012. Speaking to reporters after his speech, Mr Willetts said: ¡°I do think 바카라사이트re are universities that need to do more to increase contact hours, and need to do more to increase 바카라사이트 quality of 바카라사이트 engagement in those contact hours.¡±

Increased provision of data to students under 바카라사이트 new system will ¡°shine a spotlight on that and universities will be under pressure to raise 바카라사이트ir game¡±, he added.

john.morgan@tsleducation.com