As much as Lord Mandelson would have you believe otherwise, there is a real funding crisis in higher education. This is as much an issue for students as it is for universities. Applications for 2010 are running well ahead of the record levels of last year. Universities are being fined for over-recruitment and a Fees Review which will not report until the autumn, will not square the circle.
Labour has reversed two decades of under-investment but it will not be enough to prevent would-be students ending up on the dole queue if more funding for student places is not found in 2010. The pre-election Budget provides Labour with a last chance to prove that it is the Government of opportunity and not the Party which turned its back on students in a recession.
The Government has also suggested that universities should offer more part-time courses – neglecting the fact that their 2004 Higher Education Act left part-time students without access to fee or maintenance loans and financially disadvantages those universities with long-traditions of offering part-time and flexible options to study.
In the report ‘Fair Funding for All’, published this week, million+ have exposed the inequalities in fees and funding between full-time and part-time students. In a series of costed recommendations, we show how a single unified system could be created to end upfront fees for part-time students. This would be fairer for students and for universities.
The report also recommends amendments to the graduate contribution scheme. This would net over £1bn for the Exchequer for every cohort of students – funds which should be reinvested in higher education. This could be achieved by eliminating the two year deferment period on loans and extending the repayment period – for example, from the current 25 years which applies in England, to the 35 years which applies in Scotland. There is also a case to add a real rate of interest on graduate contributions, to a maximum of 2%, but only if the state remains the loan provider and student finance is not hived off to the commercial sector. Students could still opt to pay their contributions upfront and graduates could still pay-off early without incurring long-term interest.
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These amendments would have little impact on participation but would ensure a fairer return on government investment in higher education. Bridging the current budget gap cannot be the sole responsibility of students or those universities which would be more than willing to teach the many well-qualified applicants who would like to study at the UK’s universities. This is why Lord Mandelson must ensure that that no one qualified to go to university is left without a funded place in 2010
Professor Les Ebdon is chairman of million+, which represents new universities, and vice-chancellor of the University of Bedfordshire