STUDENT loans will be dropped before they have started - if Education can convince the States to give it more money. The department has revealed that the unpopular loans scheme would come into force only if it fails with a challenge to Treasury and Resources’ Budget plans.
Education wants its £6.5m. higher-education budget maintained in real terms and an extra £13.6m. over the next six years to continue to fund students through grants.
Treasury and Resources minister Lyndon Trott was furious at the announcement.
He said Education should drop plans for a States debate in November and consult instead.
Deputy Education minister Wendy Morgan said the States report would first ask for more money for the next four academic years.
Introducing student loans was its backstop position.
Deputy Morgan said it would have been irresponsible of the department not to have drawn up a loans scheme as a fall-back plan.
‘This was a stark choice for the States to have to make. We cannot make that decision - it has to be their decision.
‘If the States do not vote for the department to receive the additional funding required, then the only other option that the department is prepared to consider, by a majority, is the introduction of student loans under the system proposed.
‘My fear is that in November, the States might not vote for either of the options.’
That would leave Education in a position whereby it could not fund all of its university students. Deputy Morgan said it completely rejected reducing or restricting the number of students who could receive grant or loan funding, or course selection.
She added that the Education board last met Deputy Trott and his chief officer in July. It was told that the higher-education budget was unlikely to be increased in line with inflation for 2007, let alone extra funds made available for increased tuition fees.
Deputy Trott said: ‘The Treasury and Resources Department has still not seen the proposals from the Education Department.
‘What is clearly now needed is a period of proper consultation on whatever the Education Department’s proposals are.
‘Rushing to the States in November is, in my view, foolhardy. A period of measured reflection is now needed, with the Education Department returning, after proper consultation with all interested parties, in the new year.’
Article posted on 29th September, 2006 - 12.00am
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