GUERNSEY graduates face leaving university more than £9,000 in debt. Deputy Education minister Wendy Morgan said that financial restraints made student loans one of only two viable options.
‘I cannot possibly say they are inevitable, but the States will be aware of the significant sums involved in not introducing loans,’ she said.
Education will present for debate its long-awaited States report on higher education funding at the end of the month.
It offers two alternatives to cover the £2.5m. annual shortfall in university fees from September 2009:
* increasing the cash limit for higher education funding, which would allow the current system of means-tested grants to continue, or
* introducing student loans at £3,000 a year repayable over 12 years after graduation.
Deputy Morgan, who chaired the higher education working party, said financial problems had arisen because of growing student numbers, rising tuition fees and States-imposed restraints.
She could not say where the money to cover the £2.5m. shortfall would come from should the House reject a loans system.
‘That’s the question the States ‘members’ have to ask themselves: that’s not going to be a decision for Education,’ she said.
‘If the States decides not to introduce student loans, then Treasury and Resources will be directed to find that money, which would be against everything we have voted for up to this date.
‘What I want to make absolutely clear is that we are not paying any less than we have been paying before.
‘Next year, Education will be providing £5.5m. to the higher education service,’ she said.
But whatever decision the House makes, Education wants the States to approve the introduction of legislation paving the way for such loans in the future.
Deputy Morgan said that as a result of public consultation, the annual loan had been lowered by £1,500 against the figure in Education’s report last year.
‘It’s in line with the UK, which is what we tried to do, and we feel the original sum of £4,500 was too high, as did most people during the consultation process,’ said Deputy Morgan.
Each undergraduate will be asked to contribute equally towards their tuition fees, regardless of course.
‘Any scheme we might suggest must allow students from the poorest families to be able to go to university,’ said Deputy Morgan. ‘And we believe this decision certainly doesn’t put a burden on families.
University fees start at £5,664 a year for humanities and social science courses.
The most expensive - medicine, dentistry and veterinary science - start at £19,192 per year.
‘This is the main reason all students will have the same loan no matter which course they are taking,’ said Deputy Morgan.
‘We cannot penalise somebody because their course fees are higher than others.’
Article posted on 12th October, 2007 - 12.00am
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