May promises education review amid concern over student debts
THERESA MAY will announce a sweeping review of post-18 education as she admits to serious concerns about a system that leaves the poorest students in England with the highest debt.
The Prime Minister will acknowledge the current system of university tuition fees of up to £9,250 a year has not resulted in the “competitive” market that had been expected and instead “we now have one of the most expensive systems” in the world.
The Government-led review, supported by an independent chair and panel, will look at all aspects of student funding, including the maintenance support available to help with the cost of living.
In a speech she will say the goal of making university accessible to teenagers from all backgrounds “is not made easier by a funding system which leaves students from the lowest-income households bearing the highest levels of debt, with many graduates left questioning the return they get for their investment”.
The review comes amid widespread concern about the debt burden on students and the high interest rates, currently 6.1 per cent, on loans.
Mrs May will acknowledge concerns about the debts faced by graduates. “The competitive market between universities which the system of variable tuition fees envisaged has simply not emerged,” she will say.
“All but a handful of universities charge the maximum possible fees for undergraduate courses. Three-year courses remain the norm. And the level of fees charged do not relate to the cost or quality of the course.”
What we need to look at is the different aspects of pricing.
Education Secretary Damian Hinds.
UNIVERSITY TUITION fees should reflect the economic benefit graduates will have to the country, the Education Secretary said ahead of a sweeping review of higher education funding.
Damian Hinds suggested the fees charged should reflect the cost of delivering a course and future earnings – potentially signalling a cut in how much arts and humanities students are charged – as well as the needs of the country.
Theresa May will set out further details of the review of the system in England in a speech today, and Mr Hinds said it would examine all aspects of tertiary education.
The review will examine the current system of fees, which currently cost up to £9,250 a year in England.
Mr Hinds said: “I don’t think politicians are going to be setting the cost and the prices for different courses.
“All forms of education, all courses, all subjects have great value, have great worth.
“What we need to look at is the
different aspects of pricing – the cost that it is to put on the course, the value that it is to the student and also the value to our society as a whole and to our economy for the future.
“There are some subjects, some areas both in higher education and technical education where we are going to need more of those coming forward in the future because of the changes, because of the new challenges in the world economy.”
The panel carrying out the review could look at all aspects of tertiary education finance, which would include the interest rate
on student loans, Mr Hinds suggested.
The influential Commons Treasury Select Committee said the high interest rates – currently 6.1 per cent – on student loans were “questionable”.
“The panel can look at these different aspects,” Mr Hinds said.
“We absolutely can’t look at one aspect of the situation in isolation from the others.”
Asked if the review could cover the possibility of a graduate tax rather than the existing system he said it would “look at alternatives”.
But he added: “We think it’s right that if you benefit from a university degree you should make a contribution. That is what this current system does. What we are doing in the review is looking at how that system works, making sure there are alternatives, making sure there is more variety. That could include lowercost
ways of delivering education, it might mean shorter courses – which also means less time out of the labour market –more opportunities to be able to study while you work.”
The Prime Minister will also use the speech in Derbyshire to encourage a shift in the “outdated attitude” that prizes academic qualifications over technical skills.
Professor Dame Janet Beer, President of Universities UK and Vice-Chancellor of the University of Liverpool, said: “Future success depends on universities having stable and sustainable
funding – which the current system provides. This review is the opportunity to examine the evidence and to make improvements. Crucially, the current system could be better understood and feel fairer to students.
“Injecting new investment to help the poorest students with their living costs and tackling the decline in mature and part-time study must be priorities. The perception may be of academic versus technical qualifications, but the reality is very different. Universities are key to developing .. skills ... across a wide range of industries.”