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New government student support package will leave poorest students much worse off

13 April 2011

Government reforms will also see taxpayers' money given to for-profit universities for first time.

UCU said the government's new student support system announced today will increase the debt of students from the poorest backgrounds the most.
 
The union said that debt owed by the poorest students for just tuition fees could increase from nothing under the current system, to as much as £17,250 (at the end of a three-year undergraduate degree) for students starting under the new 2012 system.*
 
Although the new package contains an increase in maintenance grants, that increase does not match the increase in fees. Students from the poorest backgrounds, who previously had their fees covered by government grants and a university bursary, will now face a tuition fee debt when they graduate. On top of that, the vast majority of students will still need to take out a maintenance loan to cover living expenses.
 
The union also drew attention to the fact that taxpayers' money was being given to students to cover their fees at for-profit institutions for the first time. UCU said the move raised serious questions about the quality of UK higher education and cautioned against taxpayers' money being given to private providers following the scandals in America. More on those can be found at Over-reliance on private enterprise threatens standards in universities, warns UCU and Privatising our universities, Feb 10 [162kb]
 
UCU general secretary, Sally Hunt, said: 'Students from the poorest backgrounds will see their debt on graduation increase the most, which is another example of just how unfair the whole fees policy is. Nick Clegg and David Cameron can talk all they like about social mobility and a lack of students from certain backgrounds at some universities, but tripling fees and massively increasing the debt of poorest students is only going to exacerbate the problem.
 
'We have real concerns about the expanding for-profit degree business in this country and the fact that for-profit providers will now have access to taxpayers' money. We only need to look at America to see the that for-profit higher education is fraught with danger for students and taxpayers alike and, at the very least, needs to be properly regulated.'

* Under the current system poorer students' fees are covered in the form of a government grant plus a minimum bursary from the university if it is charging the maximum top-up fee. Under the new system poorer students will face tuition fee bills of up to £9,000 a year, offset by a maintenance grant of £3,250. However, it is anticipated that the universities will provide bursaries for poorer students as part of their access agreements. 

Last updated: 11 December 2015

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