Tuition fees and access to higher education

Tuition fees and access to higher education

Tuition fees and access to higher education John Rushforth Deputy Director HE in England 78 14 39 198 Universities General HE colleges Specialist HE colleges FE colleges providing HE courses Participation Rate Is Relatively Low )

80 70 60 E n t ry ra t e 50 40 30 20 10

0 New Zealand Sw eden Australia Iceland Korea3 United Kingdom Italy2 Japan3

Country Net e ntry rate s to tertiary type A (1s t de gre e or e quivale nt Source OECD Education at a Glance 2003 Austria Germany2 998,000 FTEs Postgraduate full-time 5% Postgraduate part-time 6% Undergraduate part-time 15% Undergraduate full-time 74%

Social Class Gap Is Wide and Persistent 60 50 40 30 20 10 0 1940 1950

1960 1970 M ore Affl uent social classes 1980 Less Affl uent social classes 1990 2000 All Classes 2001

From 2006-07 No up-front tuition fees Government pays the tuition fee to the HE institution initially Government recovers the fee after graduation Tuition fees can vary from 0 to 3,000 Repayments Tuition fees repaid alongside any maintenance loan Student maintenance loans to 4000

Collected through the payroll, like tax Salary threshold increased to 15,000 from 2005-06 Repayment rate: 9% of excess income Zero real rate of interest Students from low income families get 2700 grant Why do all this? Put more income into HE Fairer sharing of the cost between graduate, graduates family and the taxpayer Increase influence of student demand on teaching quality Put more control with institutions

Why OFFA Risk that potential students will Be concerned about debt Perceive that higher education is not affordable Something needed to safeguard and promote access An expectation that some variable fees will be invested in financial support for students What is OFFA for Regulate the charging of higher tuition fees (but only FT UG) Promote and safeguard fair access to HE Identify good practice in the promotion of equality of access to higher education But mustnt interfere with academic freedom

OFFAs levers Access agreement Bursaries Outreach Financial Information Objectives Public documents

Advice Publicity Fines Prohibition OFFA Requirements Expect more from those with furthest to go Additionality

Ambitious milestones Collaborative outreach Monitoring Communication HEI fee limits from 2006 100.00% 92.92% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00%

20.00% 10.00% 1.77% 2.65% 0.88% 0.88% 0.88% 2,700 2,500 2,250

2,000 variable 0.00% 3,000 This is based on 109 HEIs Bursary levels for students eligible for full state support from 2006 3,500 3,000 Bursary level 2,500

2,000 1,500 1,000 500 0 This represents the minimum that insitutions w il be offering to students on full state support, many w ill offer more through additional criteria, scholarships etc What will impact of fees be

There is data on the fear of debt More generous student support package More places More communication More outreach Data on the initial introduction of tuition fees, and on the international experience, is encouraging Introduction of fees did not affect entry choices Will this deliver fair access Once prior attainment is sufficiently-well taken into account socio-economic background does not have an independent effect on HE participation.

The substantial social class inequality in HE occurs largely as a result of inequalities earlier in the education system. A-level point score Participation in HE at age 18 by A-level point score and parents SEG 36 1-12 32 63 13-24

60 74 25+ 76 0 20 40 60 Percent

lower SEG higher SEG Source: DfES. Calculated from Youth Cohort Study data. 80 100 Key Elements for Widening Participation

Increased supply Effective outreach programme New modes of delivery Maintain retention rates Institutional strategies for widening participation Fair admissions Increased investment Funding 282 million to institutions in 2005-06: 51 million outreach 11 million for disabled students 220 million for retention Distributed on the basis of risk

72 M for Aimhigher Summary English HE faces a long term complex problem We have put in place a system which tries to balance the contributions of the state, students and parents OFFA has provided assurance We have a lot more to do before the profile of the HE student body fully reflects that of society at large

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