Tuition Fees
Debate between Marion Fellows and Julian Knight(7 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Julian Knight
I am not going to give way at the moment.
Loans are available in this progressive system to everybody. They are paid back only when the student is earning enough to afford it, and the amount to be repaid scales up with income. Effectively, student loans are a type of graduate tax, rather than a tax on everyone, including everyone who does not go to university. No bailiffs are sent out to collect on student loans, and after 30 years any outstanding debt is forgiven by the Government. No other loan has so many protections built in for low earners.
However, to focus narrowly on the repayment structure is to ignore so much of what makes the current system a good deal for less-advantaged students. It secures more places and higher-quality teaching.
I know there is a lot of nostalgia in some circles for the days when university was free, but too often those people fail to acknowledge that this was only possible because the proportion of school leavers who went on to higher education was tiny. I was the first member of my family to go to university. I come from a council house background and a lone-parent family. It was a really unusual event at my school to go to university, to such an extent that when people found out that I had a place, I and a few others at my school were called on stage. When I went to university, only one in 10 were able to take up the advantages that I had, and I do not want us to go back there, under any circumstances.
When the previous Labour Government decided to massively expand higher education, the costs for universities ballooned, and it was rightly decided that those who stood to benefit should shoulder a share of the cost. The alternative was to fund the entire cost from general taxation—shifting the burden to millions of people who have never had higher education—or to leave it to universities to fill in the gaps in their budgets themselves. Scotland illustrates the dangers of that approach. Local students, especially those from disadvantaged backgrounds, have been consistently squeezed out of Scottish universities in favour of fee-paying international students.
Julian Knight
Scotland used to say to the rest of the United Kingdom, “We have a gold standard in education.” I think it is a matter of shame that the SNP has presided over the collapse of Scottish education in the way that it has.
Julian Knight
No—you had your chance.
As all studies show, the introduction of fees in England has seen an increase in the number of students from poorer backgrounds. Tuition fees have opened up the opportunity to study, and the repayment structure shelters them if they do not get the graduate dividend that they hoped for.
Of course, the current system is not perfect. There are legitimate questions over the interest levied on loans, and especially about the fact that nearly every university charges the maximum amount of fees. Price signals should be an important way for students to gauge the actual value of a degree course. I also think that some courses may be too long, and if they were to be time-limited, that would bring down the costs for all. But abolishing fees and forgiving debts that will only ever be repaid by high earners, and replacing the current system with one that taxes those who do not benefit or leaves universities fighting over high-income applicants, would be a huge transfer of wealth from the poor to the rich, and a ferocious attack on opportunity and social mobility.