Ministers’ loan plans could stop poorer students in England going to university

Government to consult on making eligibility for finance dependent on strong exam grades

Students from disadvantaged backgrounds in England could be blocked from going to university unless they get strong GCSE or A-level grades, under proposals to be announced by the government this week.

On Thursday the government is to publish its long-awaited response to the Augar review of higher education funding, and the Guardian has learned that a key part of the response will be the launch of a consultation on minimum entry requirements for students to be eligible for government-backed loans for tuition and maintenance.

University leaders warn that setting minimum entry requirements too high, such as requiring a grade 5 in GCSE maths and English, would effectively end the hopes of many school leavers from disadvantaged backgrounds and others who could not be able to afford the £9,250 annual undergraduate tuition fee or living expenses without student loans.

A key determinant will be whether a GCSE grade 4 or 5 is determined to be the minimum entry standard. About 71% of pupils in England achieve a grade 4 in GCSE English and maths, falling to 52% amoung disadvantaged households.

Bridget Phillipson, Labour’s shadow education secretary, said: “After nearly three years of inaction, this meagre response shows the government does not share the ambitions of young people and their families for their futures and the future of our country.

“Instead of looking to widen access to university education, or supporting the success of our universities, the government is slamming the door on opportunity.”

A DfE spokesperson said: “Higher education is an investment and we need to ensure that graduates are being rewarded for the money, time and effort they put into their studies with an educational experience and jobs that match their skills and help contribute to the economy.”

The announcement comes as record numbers of school leavers apply for undergraduate places. The Department for Education has been battling with the Treasury over the cost of financing for nearly three years since the Augar review was published under the then prime minister Theresa May.

A further consultation will be announced on the future of foundation year courses taught at universities. Those are offered to students who don’t meet an institution’s academic requirements and remain a key point of access for many, especially mature students. However, the Augar review recommended that foundation years be restricted to further education colleges.

Other headline measures to be announced include the freezing of the tuition fee at £9,250 for another two years, until the end of the current parliament. That will result in an effective cut in university incomes from teaching undergraduates, with the value of the tuition fee already considerably eroded by inflation. In real terms its value by 2024 is likely to be much less than £7,000, depending on the rate of inflation.

The government will also announce a similar freeze on the threshold earnings for student loan repayments, hitting recent graduates who will find themselves having to make higher repayments as their wages rise more quickly above the threshold.

Earlier this year the DfE announced that the repayment threshold – the amount at which graduates in England pay off their student loans – would be frozen at £27,295, which the Institute for Fiscal Studies estimates would cost graduates earning £30,000 an extra £113 a year each. The IFS also calculated that the move would save the Treasury around £600m a year in higher repayments than it would have received if the threshold had been indexed to inflation as originally intended.

However, the proposals to be unveiled on Thursday are expected to include some good news on capping the interest charged on student loans, although that will have no immediate effect on the level of repayments.

The consultation is the government’s long delayed response to the Augar review of post-18 education and funding in England, which was announced by former prime minister Teresa May in February 2018 after Labour’s buoyant performance in the 2017 general election, thanks in part to its pledge to scrap student tuition fees.

The review was launched at a time of mounting concern about the cost – and value – of higher education, after annual tuition fees rose to £9,250 and maintenance grants were scrapped, sending individual student debt spiralling to almost £50,000.

When it finally reported on 30 May 2019, it included 53 recommendations on the future for the sector, including a reduction of tuition fees to £7,500, an extension of student loan repayments from 30 to 40 years and the reintroduction of maintenance grants for the most disadvantaged students.

However, as time has gone on and the political climate has changed, many of Augar’s recommendations have looked increasingly unlikely. With outstanding student loans reaching £140bn last year the Treasury’s priority has been to reduce the cost of student loans to itself rather than ease the burden on students.

Higher education staff and management are currently locked in a bitter industrial dispute over pensions, pay and working conditions.

On Tuesday evening a key negotiating committee of the University Superannuation Scheme, which administers the pension fund for many university staff, rejected funding proposals by the University and College Union in favour of those put forward by the employers.

Jo Grady, the UCU chair, warned that the decision would lead to further industrial action. “University vice-chancellors have today chosen to steal tens of thousands from the retirement income of staff. This is a deplorable attack which our members won’t take lying down,” Grady said.

Contributors

Richard Adams and Sally Weale

The GuardianTramp

Related Content

Article image
New Covid plan for England could confine university students to halls
Department for Education issues guidelines to combat spread of coronavirus

Richard Adams Education editor

10, Sep, 2020 @12:20 PM

Article image
Ministers to overhaul university funding after long consultation
Exclusive: tuition-fee cuts, cap on student numbers and minimum entry requirements under consideration

Richard Adams Education editor

09, Jul, 2021 @11:16 AM

Article image
Tuition fee cut 'would force universities to shrink course sizes'
Russell Group says humanities places particularly at risk without government top-up

Richard Adams Education editor

11, Mar, 2019 @6:00 AM

Article image
Treasury expected to balk at further education loan plans
Gavin Williamson hails plans for ‘lifelong loan entitlement’ but Treasury is hostile to expanding system

Richard Adams and Sally Weale

21, Jan, 2021 @5:17 PM

Article image
Labour has no easy options over student loans, say education leaders
Warning comes after party ditched its promise to abolish university tuition fees in England

Richard Adams Education editor

05, May, 2023 @11:57 AM

Article image
Government refuses multi-billion pound bailout for universities
Institutions instead allowed to charge full tuition fees during lockdown and £2.6bn to be paid early

Richard Adams Education editor

03, May, 2020 @11:01 PM

Article image
Ministers split over bailout package for universities
Education secretary arguing for cash to offset losses from international tuition fees

Richard Adams Education editor

23, Apr, 2020 @12:50 PM

Article image
Ministers to ditch target of 50% of young people in England going to university
Education secretary sets out plans to abandon target introduced by Tony Blair in 1999

Richard Adams Education editor

09, Jul, 2020 @2:43 PM

Article image
England to limit students going to Wales, Scotland and N Ireland
Devolved nations angry at policy to introduce cap on undergraduate numbers

Richard Adams, Education editor

30, May, 2020 @7:00 AM

Article image
Ministers may move university applications to after A-level results
Exclusive: DfE believes current predicted grades method disadvantages BAME students

Richard Adams Education editor

26, Jun, 2020 @5:42 PM