Student fees could be cut in review of university funding

TUITION fees could be cut and interest rates for student loan repayments lowered under a review of higher education funding to be announced by the Prime Minister next week.

Theresa May and Damian Hinds, the Education Secretary, will announce an independent review into higher education to ensure it delivers value for money for students. The review, which is expected to last for up to a year, will consider whether the amount that universities can charge students in tuition fees should be tied to job prospects and earnings after they graduate.

There are concerns that universities are routinely charging students the maximum £9,250 a year regardless of the quality of their courses.

There have been suggestions that the amount could be cut by a third for some courses. Ministers are also considering reducing the 6.1 per cent interest rates on student loans as they are so high that some students are unable to ever pay off their debts.

The Daily Telegraph understands that the review will also look at whether maintenance grants should be restored, although ministers are believed to be reluctant to do so.

The package of measures is being considered amid concerns from Tory MPS that Jeremy Corbyn, the Labour leader, was able to cut through to young voters with his pledge to scrap tuition fees outright.

Alistair Jarvis, chief executive of the vice-chancellors’ group Universities UK, said that universities would struggle to provide a “world-class education” if tuition fees were cut, and “that would be bad for graduate skills, the economy, social mobility and student choice”.