Leading Article: We should let universities charge more

Lord Browne's review of higher education funding and student finance is receiving some hefty and thoughtful advice, notably from the Russell Group of research-intensive universities which wants to see institutions able to charge what fees they see fit.

We would support this move, particularly at a time of severe funding cuts in higher education. A university education gives a huge benefit to individuals, opening minds, enabling them to get good jobs, earn more money and enjoy a good and fruitful life. So long as grants and bursaries are in place to support young people with the living costs of gaining a degree, we would argue that graduates earning decent money should be able to pay back the cost of their fees over time.

Higher education needs to be better funded to maintain the international reputation of British universities. The introduction of tuition fees, and later top-up fees, has not deterred young people from applying to university. It has brought money into the sector and meant that students have a greater stake in their education.

As things stand, the £3,225 annual fee charged by almost all universities to students in no way covers the cost to the taxpayer. One Russell Group university, for example, loses an estimated £3,620 a year for each chemistry undergraduate. Such figures lead the group to predict that leading universities will be in the red to the tune of £1.1 bn by 2012-13. Universities face unenviable choices in making up this shortfall: cutting staff; taking more overseas students; or increasing fees. Raising fees could well be the least worst option.

We also support the Russell Group's desire to see students paying a higher interest rate on their loans, as recommended by the LSE's Professor Nicholas Barr. Earlier this year on this page he argued that the interest rate subsidy on student loans was enormously expensive and regressive. It helps low-earning graduates only slightly and successful professionals in mid-career much more. This is the last group of people that policymakers should be helping. If a higher interest rate were paid, the loan to cover living costs could be increased, and new groups could be given loans, particularly part-time students and postgraduates.

The Russell Group is up against a lot of opposition. The National Union of Students does not like the idea of entirely removing the current government cap on what universities charge. The umbrella group Universities UK takes a similar view, although it does want to see the cap raised so that all universities can charge more. The Lib Dems want to phase out tuition fees altogether. In the current climate, that looks hopelessly unrealistic. We hope that Lord Browne will give the Russell Group vice-chancellors a fair hearing.

Arts and Entertainment
The first film introduced Daniel Radcliffe to our screens, pictured here as he prepares to board the train to Hogwarts for the first time.
booksHow reading Harry Potter helps children grow up to be gay-friendly
Sport
Frank Lampard will pass Billy Wright and equal Bobby Charton’s caps tally of 106 caps against
sportFormer Chelsea midfielder in Etihad stopgap before New York contract
Arts and Entertainment
A scene from Aladdin is performed at the Tony Awards in New York in June
theatreBrit producer Lythgoe makes kids' musical comedy a Los Angeles hit
Sport
Usain Bolt of Jamaica smiles and shakes hands with a competitor after Jamaica won their first heat in the men's 4x100m relay
sport
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Chancellor George Osborne, along with the Prime Minister, have been 'complacently claiming the economy is now fixed', according to shadow Chancellor Ed Balls
i100... which is awkward, because he is their boss, after all
News
i100
Arts and Entertainment
Adèle Exarchopoulos and Léa Seydoux play teeneage lovers in the French erotic drama 'Blue Is The Warmest Colour' - The survey found four times as many women admitting to same-sex experiences than 20 years ago
filmBlue Is The Warmest Colour, Bojack Horseman and Hobbit on the way
News
Kenny Ireland, pictured in 2010.
peopleBenidorm actor was just 68
Arts and Entertainment
Preparations begin for Edinburgh Festival 2014
Edinburgh festivalAll the best shows to see at Edinburgh this year
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Education

SEN Science Teacher

£21804 - £31868 per annum + SEN allowance: Randstad Education Chelmsford: Are ...

MLD Teacher

Negotiable: Randstad Education Birmingham: MLD teachers required West Midlands...

Media Studies Teacher

Negotiable: Randstad Education Hull: Randstad Education are recruiting for a M...

History Teacher

£90 - £120 per day: Randstad Education Hull: Randstad Education are looking fo...

Day In a Page

Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk on Gaza conflict

Dress the situation up all you like, but the truth hurts
Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

In grandfather's footsteps

5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

Martha Stewart has flying robot

The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

Do women cyclists need 'pootling lanes'?

Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

The dining car makes a comeback

Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

Gallery rage

How are institutions tackling the discomfort of overcrowding this summer?
Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

Eye on the prize

Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

Women's rugby

Tamara Taylor adds fuel to the ire in quest to land World Cup
Save the tiger: The day America’s love of backyard tigers led to a horrific bloodbath

The day America’s love of backyard tigers led to a horrific bloodbath

With only six per cent of the US population of these amazing big cats held in zoos, the Zanesville incident in 2011 was inevitable
Samuel Beckett's biographer reveals secrets of the writer's time as a French Resistance spy

How Samuel Beckett became a French Resistance spy

As this year's Samuel Beckett festival opens in Enniskillen, James Knowlson, recalls how the Irish writer risked his life for liberty and narrowly escaped capture by the Gestapo
We will remember them: relatives still honour those who fought in the Great War

We will remember them

Relatives still honour those who fought in the Great War
Star Wars Episode VII is being shot on film - and now Kodak is launching a last-ditch bid to keep celluloid alive

Kodak's last-ditch bid to keep celluloid alive

Director J J Abrams and a few digital refuseniks shoot movies on film. Simon Usborne wonders what the fuss is about
Once stilted and melodramatic, Hollywood is giving acting in video games a makeover

Acting in video games gets a makeover

David Crookes meets two of the genre's most popular voices