Commenting on the recommendations of the Policy Exchange’s report, ‘More fees please?’, Alice Hynes, Chief Executive of GuildHE, said:
“Discussion of private loans must be situated within a broader consideration of how the system helps students manage their finances. Recognising the urgent need for an earlier injection of cash, it may be helpful, as Policy Exchange suggests, to encourage early loan-repayments by those who can make them – provided that this is redistributive and in the interests of facilitating those with lower incomes to study, including part-time.
“Before we hive off ‘low-risk borrowers’ to private firms, we should establish where students currently get their support, and ask which organisations can be trusted to actively help students to manage their funds. Students and their long-term financial welfare, rather than for-profit banking, must be at the centre of our thinking on loans.
“Policy Exchange have identified that public funding must be maintained alongside tuition fees to help institutions sustain and improve their capacity for teaching, research and infrastructure as higher education has become more expensive. We strongly support that position on the responsibility of the public purse. But since there is still a great need to spend income on sustainability and the student experience, it is too simplistic to propose institutions as equal partners alongside Government and private firms in any subsidised reserve fund for loans – let alone to fix the rate of contribution as though institutions were all the same. Higher education institutions still do not receive enough from the public purse, but nor is their leash currently long enough to capitalise on every opportunity for raising capital and income through their own initiatives.”
For more information, please contact:
Alice Hynes, CEO GuildHE
tel. 020 7387 7711
Notes to editors
1. GuildHE members are among the most dynamic and fastest-growing institutions in higher education. Many are important providers in subjects of critical importance to the new economy as well as teacher-training, nursing, tourism and land studies. For a list of GuildHE institutions, please click here