 |
| Source: bit.ly/1m5ebNB |
In recent times, the university tuition fees have trebled causing disappointment among the students and the funding system has nearly broken. The IFS presented a report, a few days ago, which demonstrate that the new system has saved only a meagre sum of money, while the Department for Business, Innovation and Skills expects that the taxpayers will have to pay for more than they paid for replaced system. Universities have responded to the crisis by setting up a high-level panel to re-evaluate the system and government is also in consideration to change the new system. A graduate tax is looking like an initiative whose time has come for those seeking a progressive alternative.
Current funding system is flawed and unfair
 |
| Source: bit.ly/1rI2UGx |
It has come under public domain that the funding system at present is not just unfair but flawed. In 2010, David Willetts, universities minister, had said that outstanding debt would not go beyond 32% of the amount on loan and countered Higher Education Policy Institute (HEPI) and other organisation who asserted that debt would be somewhere nearby 38%. But, the truth is much gloomy. Mr. Willets now confirms the education debt at 45% and substantiated, BIS was representing it at above 50%. The current student debt is certain to pass the tipping point of 48.6% that marks the system as more expensive that the replaced one.
Nick Hillman, who was the chief adviser of Willetts in 2010 and heads HEPI currently, confessed in February that Willetts got it wrong on debt similarly when he said fees more than £6,000 would be exceptional. So the strange disturbance in universities due to the end of all public funding for undergraduate courses and trebling the fees debt was hyperbole.
David Willetts mulling over Australian education model
 |
| Source: bit.ly/1nYrNM1 |
Though Willets has publicly denied the system failure, he is mulling over alternatives with an obvious interest
in Australian education model. But, it raises questions pertaining to outstanding debts, causing failure in the attempts to sell their loan book, at the same time not producing required funds for universities.
Although Nick Clegg denies, but Danny Alexander suggests that similar to Conservatives, the Liberal Democrats would not forbid increase in the fees. Some elite universities would want to raise the cap to allow for fees of £15k or above. This will certainly open up the system to complete marketing. Moreover, students would choose the course as per their paying ability, not learning ability. Importantly, the IFS indicate that increasing the fees may not be a solution to funding crisis because it would just increase the outstanding loans debt.
Graduate tax policy is the correct answer
 |
| Source: bit.ly/1iAxr6V |
Therefore, the university education needs fresh thinkers. Ed Miliband recently spoke, "Young people feel they have no control because they are going to get into mountains of debt if they go to university", adding that "we do want a radical offer on tuition fees." Liam Byrne said in an interview with the Times Higher Education Supplement in December just after his appointment as shadow universities minister that Labour’s primary aim is to formulate graduate tax policy.
A graduate tax will not only offer a strong model but also a fairer system. It modifies the standard through which students make payment from cost to benefit. The contribution made by graduates would be based on their earnings post completion of their studies, and not on what they have borrowed to enrol in university. It simply means the end of fee system and a slight boost to the income tax, which was calculated by the IPPR previous year at only 1.96% over 40 years.
The existing system requires a basic revamp and graduate tax is the right answer. It would mark a change in Treasury accounting rules but the real costs of the current system is hidden and do not cater to the interests of students or taxpayers.
Article Source: bit.ly/1m0pUS2
No comments:
Post a Comment