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The review of post-18 education launched by the Prime Minister faces some knotty problems to untangle over higher education funding and student finance, but in itself adds another thread to the tapestry of changes woven around the sector, says Diana Beech, Director of Policy and Advocacy for the Higher Education Policy Institute.
Live higher education news roundup
The University of Leicester has announced that former Universities and Science Minister David Willetts is to be installed as its new Chancellor.
Mike Ratcliffe, Oxford-based university administrator and Director of More Means Better, examines the latest UCAS data, and finds competition for mobile students is on the rise.
Staffordshire University is aiming for significant growth in apprenticeships with the launch of £17m digital apprenticeships and skills hub that offers a model for the rest of the sector, says its Pro Vice Chancellor ( Partnerships and Region), Professor Ieuan Ellis.
Sixty one universities could face "widespread disruption" next month, the University and College Union has warned, after its members overwhelmingly backed industrial action in a row over potential changes to their pensions in the Universities Superannuation Scheme.
The long term cost of writing off graduate debt would be up to £80 billion lower than some politicians and commentators have claimed, an analysis by the Institute for Fiscal Studies.
The IFS dismissed suggestions that government debt would rise by £100 billion if it wrote off loans taken out by graduates who paid £9,000 a year tuition fees. The actual cost would be only around £20 billion if action was taken immediately, rising to £60 billion if the policy was pursued after an election in 2022, it said.
However, a paper on the analysis adds that writing off loans would still weaken public finances, and would also largely benefit high-earning graduates, with low earners standing to gain very little.
The analysis follows a debate on the cost of cancelling graduate debt after Labour pledged to scrap tuition fees and its leader Jeremy Corbyn suggested his party would also like to be able to “deal with” the debt burden of those with “the historical misfortune of being at university during the £9,000 period”
Shortly after Labour’s manifesto promise the IFS stated that scrapping fees for new students would increase public borrowing by £11 billion a year.
The new analysis says writing off post-2012 fee loans would bring about a one-off increase in the government’s deficit of £34 billion, but beyond that it would be increased only by the loss of interest that would otherwise have been accrued on the outstanding debt.
“Depending on how the write-off is scored it is possible that the deficit would actually be reduced in future years as less debt will be written off in those years. But of course this would all be dwarfed by the £11 billion a year cost if loans were replaced by “free” tuition going forward,” the paper adds.
The IFS also adds that cancelling graduate debt could leave those who did not borrow the full amount available and the 7 per cent of students starting in 2014-15 who chose to pay fees upfront feeling cheated.
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