Loans ‘are in keeping with States policy’

By Gemma Hockey

STUDENT loans would be the fair option, according to Treasury and Resources minister Lyndon Trott. The Education Department will ask the States this month to either find £2.5m. each year to cover the cost of university fees or introduce loans.

A majority of both the Policy Council and Treasury and Resources support the implementation of loans at £3,000 per year, to be paid back over 12 years.

Deputy Lyndon Trott said the loans issue was simply the States adhering to strategic policy.

‘As far as I’m concerned, the Education Department, the Policy Council and the Treasury and Resources Department, by majority, welcome the need for the introduction of student loans in order to ensure that higher education is available to all,’ he said.

‘The recent decision by the States to control public sector expenditure growth to RPI or less, a policy unanimously supported by the Treasury and Resources Department, means that student loans are a fair way of funding higher education, rather than risking damaging other education and health provisions,’ said Deputy Trott.

Students who started university after April 2006 will be subject to the loans scheme should it be the preferred option.

Deputy Education minister Wendy Morgan said a newly-formed body would administer the scheme - the Guernsey Student Loans Company.

‘A student loans company is essential,’ she said.

‘We must have a facility to determine who does get a loan and who doesn’t - we did not want it to be the Education Department, but the Guernsey Student Loans Company will have representatives from Treasury and Resources,’ she said.

Deputy Morgan said the company would deal with any students who did not pay back their loan as agreed.

‘If someone drops out, they will have to pay back the loan for the time they have borrowed the money at university,’ she said.

In February, questionnaires were sent to a random sample of 2,000 households and all students in higher education and were available to the public on request.

Deputy Morgan said she had not been surprised by responses given in the public consultation.

‘I think I have to say it was what I expected.

‘The random sample was 50/50 when it came to the question of student loans versus the current system and the response from parents and students was against the introduction of loans,’ she said.

‘The basis on which the present report has been modified fits the suggestions of the consultation.’

Article posted on 12th October, 2007 - 12.00am