Universities dismiss Miliband’s Tuition Fee Policy

Ed Milliband, Labour party leader, has promised to decrease tuition fees to £6,000. However vice-chancellors of the Russell group universities have said this is “implausible” as it would leave a £10 billion hole in University Revenue and could lead to “cuts to universities that would damage the economy, affect the quality of students’ education, and set back work on widening access to higher education”. The policy could also potentially cost the government £2.5bn a year.

In order to cover the shortfall from the lowering the fees, Labour is considering asking higher-earning graduates to pay bigger interest rates on their loans and making them continue repayments for a period even if they settle their debt early.

During the Prime Ministers Question Time last Wednesday, Conservative MP David Willetts said that he welcomes the increase in students applying to University, especially those from the poorest backgrounds, before going to ask the Prime Minister to confirm that lowering the fees would negatively affect both Universities and students invidually.

Mr Willetts further went on to claim that Labour’s policy of lowering fees would only help rich graduates, questioning how such a policy could be called progressive.

The Prime Minister answered that the University funding system was a long-term plan that has delivered, adding that Labour has no clue: “When are you going to make up your minds and set a policy.”

Ed Milliband has repeatedly mentioned his intention to lower tuition fees but has yet to issue a “manifesto” pledge.

The Business, Innovation and Skills (BIS) Committee called for an urgent review of the system, saying the Chancellor’s removal of the cap on student numbers may result in a multi-billion pound budget gap.

The commission forecasted that for every £1 the government lends out in student loans it loses 45p. The loss in the previous system was only 28p.

“With the prospect of a large potential black hole in the government’s budget figures, it is all the more alarming that the Government has refused to conduct a review of the current student loan system,” said Adrian Bailey MP, Chair of the BIS Committee. Adding that: “the Government apparently believes it could hike up the interest rate of their loans without this constituting a change in the ‘T&Cs’.” Something that is a majorn concern to all students with outstanding loans and anyone consdering applying to University.

The government, which has cut teaching grants to Universities as part of the austerity program, argues that higher tuition fees are needed to maintain standards.

While student loans, maintenance grants and University bursaries are in place to ensure a wide participation from students from poorer backgrounds, often students will rack up debts on average £43,500 in debts by the time they graduate.

Imperial College Union recently updated their policy on higher education funding, and decided to lobby the government to stop an increase to tuition fees.

Alex Savell, Deputy President (Finance and Services), gave his thoughts on the proposal: “While in principle the Union applauds any step to reduce tuition fees, if the £6000 cap comes with no increased state funding or an additional tax on high earning graduates then it is not a step towards the ideals we support in spite of appearances.

“Slipping in a Graduate Tax via the back door in particular is neither transparent, nor fair and it is not what Imperial College Union believes is right for it’s students.

“We have a clear objective and demand: Reverse the decision to raise Tuition Fees to £9000 without reducing the commitment to Widening Participation by a single penny.”