Think tank shows costs of the new funding system are expected to hit more than £7billion
The UCU said slashing state funding for higher education by over £1bn and allowing universities to charge higher tuition fees were ideological moves by a government determined to push through higher fees, rather than properly consider the financial consequences of its actions.
The report, from the think tank million+, found the economic costs of the new funding system are expected to reach more than £7 billion – 6.5 times higher than the expected savings.
UCU general secretary Sally Hunt, said: “We warned that fees close to £9,000 a year would be the norm and the government’s calculations for repayment by graduates were flawed. We take little pleasure in being correct, but it is clear that shifting the burden of paying for university education on to students was an ideological move, not a financial one.
“The taxpayer is already footing a massive bill to cover student loans and may well end up covering an increased benefits bill as well. It is time for a serious rethink from the government.”
Full details on the report can be found here.
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