How higher tuition fees will cost the government more

[the_gabih]

The hike in tuition fees is set to create a huge financial black hole because the government underestimated how many universities would charge the maximum £9,000 fees, according to a powerful committee of MPs.

A report by the Public Accounts committee suggests that the funding gap could cost the taxpayer an extra £95m a year and lead to a reduction

Comments

[polietics]

Really, did anyone other than the government not see this coming?

Of course not, because don't you know every single service can be based on a privatised model? Competition will lower prices! There's no need for government subsidiaries to education, it actually stifles progress!

fuck's sake stupid Liberal hope mixing with Tory evil

[silverpatronus]

they assumed that the schools would be competing, which ANYBODY with a brain can tell you is a moronic assumption. schools will never compete for students; students are always competing for schools. it's the basis of the whole tertiary education system!

[red_pill]

prahapse im missing something, but...

loans are being incressed whilst grants to the univserty from the public purse are decressed. the net is roughly simmler, but the loans will, theorticly, get paid back.

therefor, whils thtere is in incress in borrowing from the studnet loans componey, there is a decress in giving from the grants or whatever, and it all stays about even keel, but with more paying back

or am i missing a step?

[the_gabih]

Theoretically. However, that won't even out until the majority of graduates find jobs that pay them at least £21,000, and in the current economic climate, that might not happen for a while. In the meantime, the government's budgeted for a situation where most universities charged £7,500 a year, and suddenly they've got to find extra money where they'd planned to save.

[red_pill]

ummm...

still, theorticly, they should get back more money then they would with say, the grant. prima facie anyway.

[the_gabih]

But we don't do grants. We haven't since 1997 (except for a miniscule maintenance grant for the poorest students, which I think is being kept). Nobody's arguing for grants, we're just saying that massive cuts are both not helping the budget, and hurting social mobility within the UK.

[x_butterfly19_x]

Really, did anyone other than the government not see this coming?

No.

The tags say it all tbh.

[ceilidh_ann]

I am shocked, I tell you. SHOCKED! What's next? Osborne's economic plans failing? Camerin privatizing the NHS? Clegg taking it like a coward?

[mahasin]

Next up: Higher tuition means enrollment is down *gasp* *shock*