Ministers are today accused of leaving a £1billion black hole in their costings for introducing a controversial new system of higher university tuition fees and student loans.
Students could face unforeseen interest rate hikes once they start repaying their loans because the Government seriously underestimated the cost of the policy, a damning new report has claimed.
Ministers have claimed that allowing universities to charge students up to £9,000-a-year in tuition fees will generate annual savings of £1.3billion.
But today’s report, by the Higher Education Policy Institute, argues the savings will be wiped out by the huge costs of implementing the policy.
Students could face unforeseen interest rate hikes once they start repaying their loans because the Government seriously underestimated the cost of the policy, a damning new report has claimed.
Ministers have claimed that allowing universities to charge students up to £9,000-a-year in tuition fees will generate annual savings of £1.3billion.
But today’s report, by the Higher Education Policy Institute, argues the savings will be wiped out by the huge costs of implementing the policy.
The Government has been too ‘optimistic’ about how much graduates will earn in future and the amounts they will be able to repay.
It has also failed to appreciate the extent to which higher tuition fees will push up inflation and create a higher bill for pensions and other benefits which rise in line with inflation.
Remember, this is the fairest government we have ever had....
It has also failed to appreciate the extent to which higher tuition fees will push up inflation and create a higher bill for pensions and other benefits which rise in line with inflation.
Remember, this is the fairest government we have ever had....
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