Government review calls for tuition fees to be cut to £7,500

first_imgA review into further education has called for areduction in tuition fees and interest rates, to be combined with a lengtheningof the loans payback window beyond 30 years. The Augar review, which is being led by bankerand visiting fellow at Cranfield School of Managment Philip Augar, has made 40recommendations to government, including the return of means tested grants,more support for part-time students and the lengthening of the loans paybackwindow beyond 30 years. The review was commissioned following a speechby Theresa May in February 2018, where she announced “a wide-ranging reviewinto post-18 education.” The review considers the nature and extent to whichstudents over 18 are expected to fund their education, including the “level,terms and duration of their contribution.” “For those on lower earnings, overpaying some ofyour loan is often futile as it won’t alter what you repay in future.” The review follows criticism of the currentstudent loans system. According to research from the Institute for FiscalStudies, it is projected that only 17% of students will be able to pay offtheir student loans in full before they are written off, meaning that 83% ofstudents will not pay their loans off in full. This is significantly greaterthan the government projections of 30% when the new loans system was introducedin 2011. Founder of Money Saving Expert Martin Lewis hassaid that the current loans repayment system, which allows for students to payoff their loans early, is “just flushing money down the loo. The review calls upon the government to reduce theannual university tuition fee from £9,250 to £7,500, as well as to reduce thelevel interest rate on student loans from 6.3% to 1.5%. Analysis released Education Secretary DamienHinds shows that in 1 in 10 university courses, 3 in 4 students earn less than£25,000 five years after graduation. Hinds commented that the data show thatsome universities are “more focused on getting ‘bums on seats’ than gettingstudents into courses worth paying for.” Oxford University has been contacted forcomment.last_img read more