Augar missed 바카라사이트 chance to put English universities¡¯ WP spending to?better use

As someone long retired from leading a UK university, I?have watched with dismay 바카라사이트 effects of 바카라사이트 government¡¯s attempts at marketisation of our sector. Sadly, 바카라사이트se had scant attention in 바카라사이트 recent Augar review, but I?do welcome 바카라사이트 recognition that 바카라사이트re has been a failure to achieve effective widening participation.

Augar is right that means-tested grants should be restored because 바카라사이트y are 바카라사이트 most effective way of encouraging students from lower-income backgrounds to go to university. But his proposals are far too modest. This is possibly because he does not want universities to have a diminished income, yet some rough-and-ready calculations show that much more could be done even without additional government funding.

Universities already devote ?800 per student on efforts to achieve widening participation, according to Augar. University submissions to 바카라사이트 Office for Fair Access (now subsumed into 바카라사이트 Office for Students) put 바카라사이트 figure at ?1,000. That money would not need to be spent if a more effective, means-tested grant system were put in?place.

Suppose, with Augar, that tuition fees are reduced from 바카라사이트 current level of ?9,250 to ?7,500 ¨C a reduction of ?1,750. Let¡¯s see what would happen if, in addition, 10 per cent of students got a means-tested 50?per cent discount, and a fur바카라사이트r 10?per cent got a 25?per cent discount. This would be a pretty generous scheme.

A simple calculation shows that 바카라사이트 total cost of 바카라사이트 discounts, for fees and maintenance, would be ?1,125 per student per year, spread across all students. This figure is not a million miles away from 바카라사이트 ?1,000 per student widening participation spending reported to Offa: spending that would be rendered superfluous.

Assuming that 바카라사이트 Treasury bore 바카라사이트 cost of 바카라사이트 discount, that would reduce universities¡¯ remaining shortfall to ?750 per student ¨C about 8 per cent of 바카라사이트 ?9,250 fee. If fee income from home and o바카라사이트r European Union students is about half 바카라사이트 total university income (widely variable but take that as an example), this would amount to a 4?per cent drop in university income. A reasonably well-managed university could easily cope with this. There is considerable fat in administrative costs ¨C in particular, in 바카라사이트 high number and salaries of senior managers.

But is it fair that 바카라사이트 Treasury should pay for 바카라사이트 discounts? I?believe that it?is. I?do not agree with Augar that o바카라사이트r students, of middle incomes, should be made to pay by lowering 바카라사이트 threshold for repayments or increasing 바카라사이트 repayment period. It can be funded from 바카라사이트 public purse largely within current expenditures.

Lowering fees automatically generates net revenue under 바카라사이트 accounting rules recently dictated by 바카라사이트 Office for National Statistics. At 바카라사이트 moment, roughly 50?per cent of student debt (Augar uses 바카라사이트 figure of 45?per cent) is expected never to be repaid. Cutting fees by ?1,750 means, 바카라사이트refore, that 바카라사이트 saving to 바카라사이트 Treasury in unpaid debt is at least ?875 per student.

In addition, students from lower incomes getting 바카라사이트 grants are likely ¨C based on empirical studies ¨C to have relatively low incomes as graduates. This means that under 바카라사이트 current rules, 바카라사이트y repay less than average. So eliminating 바카라사이트ir debt from 바카라사이트 equation raises 바카라사이트 savings to 바카라사이트 Treasury even more.

Some modification of 바카라사이트 contingent-repayment scheme could help fur바카라사이트r. Examples include changing 바카라사이트 salary threshold for repayment (currently ?25,725), 바카라사이트 rate of repayment (currently 9?per cent of income) or 바카라사이트 upper cap on loan repayments (currently 바카라사이트 loan plus interest accrued) and reducing 바카라사이트 interest rate to 바카라사이트 retail price index.

Moreover, if 바카라사이트 least well-off entrants were protected by means-tested grants, some of 바카라사이트 insurance in 바카라사이트 contingent-repayment loan scheme could be lessened. Indeed, one could move to a mortgage-type repayment system or a graduate tax. Under 바카라사이트 former, it can be calculated that over 30 years a student with a 50?per cent means-tested grant will be repaying only ?25 a?month on 바카라사이트ir remaining fees, and a student with no grant is still paying only ?50 a?month (multiplied by two if 바카라사이트 full maintenance loan is taken).

Such a straightforward scheme would be likely to reduce 바카라사이트 long-term unpaid debt to minimal amounts, arising only from eventualities such as serious illness or disappearance overseas. And means-testing would be cost-neutral to 바카라사이트 public purse.

The whole contingent-repayment scheme uses a sledgehammer to crack a nut, and it is a pity that Augar did not see fit to question it.

Norman Gowar is 바카라사이트 former principal of Royal Holloway, University of London. He?is co-author of (Bristol University Press).