A “stepped repayment system” where higher-earning graduates pay more or a graduate tax could save the government money while removing “regressive features” of its reforms, according to a report commissioned by the University of the Arts London to drive debate on funding change.
The report, by Gavan Conlon and Maike Halterbeck of London Economics, says both options would allow for the reintroduction of maintenance grants, while highlighting in detail how the government’s changes to student finance in the Augar review – lowering repayment thresholds and slowing their uprating, plus scrapping “real” interest rates – benefit the highest earners.
It comes after Universities UK launched a “national conversation” to seek solutions on the underfunding of teaching and research.
