Uni Loans In Financial Black Hole

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A topic from News & Current Affairs: Education

laresWed 06/04/11 14:41

"It isn't just the coalition's NHS reforms that are in chaos. As I noted last week, the unexpectedly high number of universities planning to charge the maximum £9,000 a year (a possibility foreseen by almost everyone except ministers) means that the government's higher education reforms face a £1bn black hole. Ministers had budgeted for an average fee of just £7,500 but will now have to pay out far more in tuition fee loans. Of the 32 institutions we've heard from, 23 intend to charge full whack, including Oxford (1) and Liverpool John Moores (109), and the average fee currently stands at £8,855."

" In response, ministers can either make even greater cuts to the teaching budget, cut around 38,000 student places, or reduce the cap on fees.

We'll get some idea of what they're planning when Vince Cable, the man with ministerial responsibility for the plans, addresses a higher education funding conference in Birmingham. Previews of his speech suggest that Cable will warn that universities could find themselves in trouble if students can't see value for money. He will add, with a hint of menace, that unfilled places will be withdrawn and that institutions "should not assume they will easily get them back." In other words, the government's best hope is that students will be deterred by excessive fees. Should this prove not to be the case, the likelihood is that ministers will withdraw the places themselves."

http://1sq.me/hcVwlO

markonseaWed 06/04/11 14:43

"a possibility foreseen by almost everyone except ministers ..."

Says it all, really.

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