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Browne review calls for no limit on tuition fees | Browne review calls for no limit on tuition fees |
(40 minutes later) | |
By Sean Coughlan BBC News education correspondent | By Sean Coughlan BBC News education correspondent |
Universities in England should be able to charge unlimited fees, a major review of university funding has recommended. | Universities in England should be able to charge unlimited fees, a major review of university funding has recommended. |
Lord Browne's review calls for the £3,290 cap on fees, which students borrow in loans, to be scrapped. | Lord Browne's review calls for the £3,290 cap on fees, which students borrow in loans, to be scrapped. |
Instead it proposes a free market in fees - setting out models of charges up to £12,000 a year for a degree course. | Instead it proposes a free market in fees - setting out models of charges up to £12,000 a year for a degree course. |
The UCU lecturers' union said the plan was "the final nail in the coffin for affordable higher education". | The UCU lecturers' union said the plan was "the final nail in the coffin for affordable higher education". |
However, href="http://www.independent.gov.uk/browne-report" >Lord Browne's review makes clear that universities that charge more than £6,000 a year would lose a proportion of the fee to help cover the cost of student borrowing. | |
Lord Browne told BBC Breakfast: "We have taken off the cap but we haven't taken off the restrictions." | |
He said all universities were different and needed different amounts of money to retain their world class status. | |
He acknowledged graduates would be paying significantly more back in their tuition fee and maintenance loans but insisted they were not being left with "mortgage-style debts". | |
"They would be paying the same interest rate as the government uses to borrow. They will only pay it back when their earnings go above £21,000," he said. | |
"If you choose to go into a job which doesn't pay very much or if you choose to go out of the workforce to build a family, you won't have to pay it back." | |
Ministers will now have to respond to the proposals for reforming university funding - with the threat of a Liberal Democrat backbench rebellion. | Ministers will now have to respond to the proposals for reforming university funding - with the threat of a Liberal Democrat backbench rebellion. |
Universities 'could close' | Universities 'could close' |
Increasing fees would mean a direct reversal of personal pledges made at the election by Liberal Democrat MPs - and will cause deep political difficulties for the coalition government. | Increasing fees would mean a direct reversal of personal pledges made at the election by Liberal Democrat MPs - and will cause deep political difficulties for the coalition government. |
The Liberal Democrats own youth section has branded the fee rise as a "disaster". | The Liberal Democrats own youth section has branded the fee rise as a "disaster". |
The far-reaching proposals set out a system in which much of the cost of university places would be transferred from the taxpayer to the student. | The far-reaching proposals set out a system in which much of the cost of university places would be transferred from the taxpayer to the student. |
The report seeks to balance much higher charges with support for applicants from poorer families. | The report seeks to balance much higher charges with support for applicants from poorer families. |
This more competitive market would also mean that for the first time universities could go out of business, says the report. | This more competitive market would also mean that for the first time universities could go out of business, says the report. |
Universities must compete over students, fee levels and against new providers, the review panel recommends: "If they fail... they might ultimately close or be taken over." | |
Lord Browne proposes that the government would guarantee to underwrite fees up to £6,000 per year - but universities would be allowed to charge any amount above that. | Lord Browne proposes that the government would guarantee to underwrite fees up to £6,000 per year - but universities would be allowed to charge any amount above that. |
"There is no robust way of identifying the right maximum level," says Lord Browne. | "There is no robust way of identifying the right maximum level," says Lord Browne. |
Universities would have to pay an increasing "levy" on fees above £6,000 - but even when charging £12,000, universities will be able to keep almost three quarters of the fee. | Universities would have to pay an increasing "levy" on fees above £6,000 - but even when charging £12,000, universities will be able to keep almost three quarters of the fee. |
Higher interest rates | Higher interest rates |
As now, students would not have to pay fees up-front, but would receive a loan. | As now, students would not have to pay fees up-front, but would receive a loan. |
But they would not have to start repaying it until their earnings reached £21,000 per year, up from the current level of £15,000. | But they would not have to start repaying it until their earnings reached £21,000 per year, up from the current level of £15,000. |
The report recommends that students should pay higher interest rates on these loans, set at the government's rate of borrowing - currently 2.2% - plus inflation. | The report recommends that students should pay higher interest rates on these loans, set at the government's rate of borrowing - currently 2.2% - plus inflation. |
All students will be able to borrow £3,750 per year - and young people from families earning less than £25,000 will receive a further £3,250. | All students will be able to borrow £3,750 per year - and young people from families earning less than £25,000 will receive a further £3,250. |
There have been warnings that middle-income families will face a particular financial squeeze from such a fee hike. | There have been warnings that middle-income families will face a particular financial squeeze from such a fee hike. |
"There is a feeling that the rich can afford it - and the poor will quite rightly be protected - but people in the middle could find themselves really penalised," says Justine Roberts of the Mumsnet website. | "There is a feeling that the rich can afford it - and the poor will quite rightly be protected - but people in the middle could find themselves really penalised," says Justine Roberts of the Mumsnet website. |
Watchdogs merged | Watchdogs merged |
There are also radical proposals to shake-up how higher education is administered. | There are also radical proposals to shake-up how higher education is administered. |
Four separate funding bodies and regulators - including the higher education funding council and the fair access watchdog - should be merged into a single Higher Education Council, says the report. | Four separate funding bodies and regulators - including the higher education funding council and the fair access watchdog - should be merged into a single Higher Education Council, says the report. |
This would take over responsibility for standards, strategic subjects, access for poorer students and resolving disputes with students. | This would take over responsibility for standards, strategic subjects, access for poorer students and resolving disputes with students. |
There are also steps to ensure the quality of degree courses. | There are also steps to ensure the quality of degree courses. |
University lecturers should be required to have teaching qualifications - and students should reach a minimum threshold of qualifications before receiving student loans. | University lecturers should be required to have teaching qualifications - and students should reach a minimum threshold of qualifications before receiving student loans. |
This summer saw an unprecedented demand for places - with thousands of well-qualified students missing out on places. | This summer saw an unprecedented demand for places - with thousands of well-qualified students missing out on places. |
The report calls for the number of places to be expanded by 10% over three years. | The report calls for the number of places to be expanded by 10% over three years. |
But it calls for an end to across-the-board funding for more places - and says that extra places should be in response to demand. | But it calls for an end to across-the-board funding for more places - and says that extra places should be in response to demand. |
Private universities | Private universities |
There are also suggestions for a more diverse university system, which would encourage the introduction of new providers and different ways of studying. | There are also suggestions for a more diverse university system, which would encourage the introduction of new providers and different ways of studying. |
Part-time students and those studying in private universities would be able to claim student support. | Part-time students and those studying in private universities would be able to claim student support. |
Paul Marshall, head of the 1994 Group of research-intensive universities, welcomed the review as "the first progressive step" towards increasing funding for universities and "targeting student support more effectively at those in most need". | Paul Marshall, head of the 1994 Group of research-intensive universities, welcomed the review as "the first progressive step" towards increasing funding for universities and "targeting student support more effectively at those in most need". |
But the Million+ group of new universities says it will deter poorer students. | But the Million+ group of new universities says it will deter poorer students. |
"Fees at this level - even if they are backed by state-funded fee loans - will undoubtedly mean that some students who would have gone to university will decide not to go," said chief executive, Pam Tatlow. | "Fees at this level - even if they are backed by state-funded fee loans - will undoubtedly mean that some students who would have gone to university will decide not to go," said chief executive, Pam Tatlow. |
The National Union of Students said students would be left with "crippling levels of debt and many universities face utter devastation as a result of horrific cuts". | The National Union of Students said students would be left with "crippling levels of debt and many universities face utter devastation as a result of horrific cuts". |
"To make the next generation pick up the bill for cuts and force students to pay even more for less would be both unsustainable and unjust." | "To make the next generation pick up the bill for cuts and force students to pay even more for less would be both unsustainable and unjust." |
Elsewhere in the UK, Scottish students studying in Scotland do not have to pay any fees. In Northern Ireland and Wales, fees are charged up to a maximum of £3,290. | Elsewhere in the UK, Scottish students studying in Scotland do not have to pay any fees. In Northern Ireland and Wales, fees are charged up to a maximum of £3,290. |