Student review 'could lead to higher fees'

10/11/2009

Former BP chief Lord Browne is to lead a new investigation of tuition fees, the results of which could result in many students graduating with bigger debt problems in future.

The review will look into the charges, which come to around £3,000 per year for English students.

Announcing the investigation, business secretary Lord Mandelson said that it would include the "balance of contributions to universities by taxpayers, students, graduates and employers".

However, Wes Streeting, president of the National Union of Students, criticised the review.

"There is a real danger that this review will pave the way for higher fees and a market in prices that would see poorer students priced out of more prestigious universities and other students and universities consigned to the 'bargain basement'," he said.

Kevin Still, EuroDebt director, added: "Our concern is that we are seeing 'thirty something' families with the legacy of not only student debts, but the unsecured borrowing that seems to spiral from your early twenties when trying to establish yourself on start-up graduate salary. If this burden continues to increase with new graduate intakes then we would expect the carried forward debt to increase into late twenties and beyond.

"This is often then compounded when a mortgage is taken on, the marriage has to be paid for and a new family increases costs and potentially reduces household income. A Student Loan is treated differently in bankruptcy and an IVA, but it is the other unsecured debts, like credit cards and personal, that tend to grow out of control."

Figures released last week by Compass showed that just over one in ten Brits believe that such a review should consider increases to fees.

Push, the student information service, believes that the average student beginning his or her studies this autumn will graduate with over £23,000 of debt.

Tags; Budgeting Advice, Recent Graduate Debt,

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