UK University tuition fees must be cut: New report
Posted on June 3, 2019
The UK University tuition fees must be reduced as per the proposal of a review commissioned by the Government of UK. It has recommended that the existing yearly UK University tuition fees of £9,520 must be reduced to £7,500.
The students are expected to incur lesser interest payments and debt with this decrease. The interest payment would also not be charged at inflation +3% but juts at the rate of inflation. This is as per the autonomous review of post-18 education in the UK chaired by Philip Augar the banker.
The review report suggests a package of measures for reforms. The Education Loan repayment would begin at a lower point from yearly salaries of £23,000 and not £25,725. The period will also be extended to 40 years from 30 years, as quoted by Study International.
Debts that are not paid will be cancelled after 40 years of graduation and not the existing 30 years. The returns of maintenance grants for students who are poor and in technical courses at higher-level have also been proposed. The introduction of learning loan allowance of lifelong for supporting students of all ages has also been proposed.
The proposals are based on the 2 major takeaways from the landmark review:
- The UK University tuition fees are very high
- Universities in the UK get too many funds from the Government
The review further describes that the Universities in the UK have obtained generous funds. These must be diverted for other sectors that have faced severity like further education.
Tuition fees are a huge concern amongst the students in the UK. This is because many are facing 10s of 1000s of pounds in debt. The idea if lowering the UK University tuition fees were supported by 59% participants of a You Gov poll.
In the latest general elections in the UK, the youth had overwhelmingly cast votes in favour of the Labour Party. This was being spurred by the manifesto of the party that promised to abolish tuition fees totally.
An analysis in the Financial Times found that the models in the review chaired by Augar would be of benefit for the more affluent students. This is because they would be in a position to repay debt fully prior to the new duration of 40 years. These would also be an advantage from the cap of a lifetime of full repayments. This is of a maximum of 12 times the value of the loan adjusted to inflation, it notes.
The IFS – Institute for Fiscal Studies report also concurs with the analysis of the Financial Times. It estimates that graduate in the top 20% income group would reduce payments by almost 30% or 1/3rd.
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