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| The upper limit on tuition fees 'should be removed' | The upper limit on tuition fees 'should be removed' |
| (40 minutes later) | |
| By Sean Coughlan BBC News education correspondent | By Sean Coughlan BBC News education correspondent |
| Universities in England should have no upper limit on tuition fees, Lord Browne's review is set to recommend. | Universities in England should have no upper limit on tuition fees, Lord Browne's review is set to recommend. |
| But government support will only be guaranteed up to a maximum of £7,000 per year - which is likely to make this the upper fee for most universities. | But government support will only be guaranteed up to a maximum of £7,000 per year - which is likely to make this the upper fee for most universities. |
| This would mean more than doubling the current tuition fee of £3,290. | This would mean more than doubling the current tuition fee of £3,290. |
| Universities will be able to charge above this limit - if they share the financial burden of higher loans to students. | Universities will be able to charge above this limit - if they share the financial burden of higher loans to students. |
| This would mean a three-year degree costing students £21,000 or more - with many also likely to face a higher rate of interest for loan repayments. | |
| Universities UK president, Steve Smith, says that universities face such deep budget cuts in the forthcoming spending review that an increase in fees to £7,000 would only replace the money that the government is about to withdraw. | |
| "This is transferring the cost from the state to the student," said Professor Smith. | |
| 'Two tier system' | |
| The Million+ group of new universities warned that this would create a "two-tier university system, with one set of universities for the rich and one set of universities for everybody else". | |
| Lord Browne's review of university funding in England is set to deliver its recommendations to the government on Tuesday. | Lord Browne's review of university funding in England is set to deliver its recommendations to the government on Tuesday. |
| It appears likely that it will advise ministers to scrap the current upper limit on tuition fees, introducing a market in what students can be charged. | It appears likely that it will advise ministers to scrap the current upper limit on tuition fees, introducing a market in what students can be charged. |
| However the proposed funding mechanism will only fully underwrite the cost of fees up to £7,000 per year. | However the proposed funding mechanism will only fully underwrite the cost of fees up to £7,000 per year. |
| Universities will be able to charge above this limit - but as fees rise above £7,000 they will only be allowed to keep a diminishing proportion of the higher charges. | Universities will be able to charge above this limit - but as fees rise above £7,000 they will only be allowed to keep a diminishing proportion of the higher charges. |
| This is expected to act as a brake on raising fees above £7,000 - but the most sought-after courses in the most elite institutions would be expected to be able to charge higher fees. | This is expected to act as a brake on raising fees above £7,000 - but the most sought-after courses in the most elite institutions would be expected to be able to charge higher fees. |
| The coalition government will have to respond to such far-reaching proposals. | The coalition government will have to respond to such far-reaching proposals. |
| Business Secretary Vince Cable has already emphasised the importance of a "progressive" element to the student funding deal. | Business Secretary Vince Cable has already emphasised the importance of a "progressive" element to the student funding deal. |
| This could either come in the Browne report or in the government's response - and could mean that higher-earning graduates will pay back their loans at a higher rate of interest. | This could either come in the Browne report or in the government's response - and could mean that higher-earning graduates will pay back their loans at a higher rate of interest. |
| Transport Secretary Philip Hammond, speaking on the Andrew Marr Show, said this could mean "those with the lowest incomes have their interest rate effectively subsidised". | |
| But the raising of tuition fees will present deep political challenges to the Liberal Democrats. | |
| The party's MPs, including leader Nick Clegg, signed personal pledges at the election to vote against any increase in tuition fees - and any attempt to reverse this will bring them under pressure from students and their own grassroots supporters. | |
| The Liberal Youth group has already called for party members to mobilise against such a tuition fee increase. | |
| Students have warned against a "betrayal" of election pledges on tuition fees - and have circulated a photograph showing Nick Clegg and his signed pledge. | |
| Labour leader Ed Miliband has reached out to potential tuition fee rebels among Lib Dem MPs - saying that he will work with anyone wanting a more "progressive" student finance system. | |
| Les Ebdon, chair of the Million+ group of universities, warned of a socially-divided university system. | |
| "Only the most socially elite universities could charge fees of £7,000 while universities with a high proportion of students from poorer families will feel unable to charge fees at such a high level. | |
| "It is hard to see how this meets the government's stated aim of a fairer society." |