Government announcement on reform of higher education and student finance

On 3rd November the Government announced plans to change the system of Higher Education funding. This follows publication of Lord Browne’s Independent Review of Higher Education Funding in mid-October.

The proposals in brief

• All Universities and colleges will be able to charge fees of up to £6000. Those who wish to charge more will be able to charge up to £9000 “in exceptional circumstances” but will be subject to tougher conditions on widening participation and fair access.
• Those studying part-time will be entitled to a loan rather than having to pay their fees up-front, so long as they are studying for at least one third of their time.
• A “National Scholarships Programme” will be set up to target bright potential students from poor backgrounds.
• The threshold at which graduates will start to repay their loans will be increased from £15,000 to £21,000. The repayment will be on 9% of income above this amount, with all outstanding repayments written off after 30 years.
• Graduates earning more than £21,000 will be charged a real rate of interest on their loans. The rate will be tapered according to income, reaching a maximum of RPI plus 3% for those earning £41,000  .

 
Legislation is expected to be voted on before Parliament rises for Christmas.

Read full details of the proposals here
Read the Opposition’s response here