Tuition Fees
November 11, 2010 9:00 AM
By NICK HARVEY in North Devon Journal
By NICK HARVEY in North Devon Journal
The recently announced changes to University tuition fees and the Government's response to the Browne Report on Higher Education and Student Finance have unsurprisingly attracted much attention. It is utterly vital that the facts behind these changes are outlined and that I convey their implications.
I must stress that my Liberal Democrat colleagues and I remain committed to delivering the fairest possible deal for universities and students. Under the proposals, nobody will have to pay upfront tuition fees - and for the first time this is being extended to part-time students. The Browne Report suggested universities could charge unlimited fees without qualification - but Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable said this would be fundamentally unfair to students. That's why the Government has proposed a cap of £6,000. In exceptional cases, universities will be able to charge up to £9,000 - but they can only do this if they do much more to attract students from disadvantaged backgrounds and they will be penalised if they don't.
The Coalition's proposals also have some extremely progressive elements, which are much fairer to students than the current system. There are several changes which together will mean that the lowest earning 25% of graduates will pay less than they do now and only the highest earning 40% of graduates will pay back the full loan.
Nobody will pay back anything until they are earning at least £21,000 - up from £15,000 and there will be more generous grants for students from poorer backgrounds. Furthermore, for the first time, there will also be a link between graduates' earnings and the contribution they make. It is evidently wrong that, under the current system, a high earning banker pays the same as a nurse or youth worker.
Of course, those on the highest incomes after graduation must not be able to buy themselves out of this progressive system by paying off their loans early - this would be deeply unfair to those on middle incomes. Consequently, the Government will consult on potential early repayment mechanisms - similar to those paid by people who pre-pay their mortgages. These mechanisms would need to ensure that graduates on modest incomes who strive to pay off their loans early through regular payments are not penalised.
It is wholly regrettable that the coalition has had to raise these fees and it was not a decision that was taken lightly. However, we can only play the hand we are dealt and Labour's legacy of debt and inefficiency left us with far fewer choices than we would have liked. Given these difficult economic circumstances, the Government's proposals represent the best solution - and reflect a real Liberal Democrat influence.
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