21 September 2009

Undergraduates To 'Contribute More'

Students could be faced with higher fees, larger loan repayments and fewer grants under new plans outlined by business leaders.

A report by the CBI's Higher Education Task Force, said that the rapid rise in student numbers, as well as the severe strain on public finances, meant that current public funding levels were "unsustainable".

The report said that the government has already asked universities in England to make savings of £180 million between 2009 and 2011, with many budgeting for cuts of between 10 and 20%.

The report recommended that the government's target of 50 per cent of 18-30-year-olds participating in higher education should be dropped and that tuition fee loans should be provided at the government's cost of borrowing, rather than the current 0% interest.

The report also said that maintenance grants should be re-focused on those most in need, while an increase in fees was also "inevitable", with a suggestion that the fee cap should rise from around £3,000 to £5,000.

The report has been heavily criticised by the National Union of Students, which labelled the report "offensive". President Wes Streeting said: "At a time of economic crisis, when many hard-working families are struggling to support their offspring through university, I am astonished that the CBI should be making such offensive recommendations.

"Students are already leaving university with record levels of debt, while graduate job prospects are at an all-time low."

(KMcA/BMcC)