PARENTS at last night’s student loans discussion want the States to fight harder for lower university fees. Deputy education minister Wendy Morgan, and other members of the higher education working party, were accused by some of not doing enough to get Guernsey students the cheaper fees enjoyed by overseas territories like Gibraltar.
‘The States need to be taking the argument to the UK Government more forcibly. Countries in the European Union and overseas territories are paying cheaper rates, so why can’t we?’ said contracts manager Bob Farrell, whose daughter is studying zoology at Durham University.
‘The British Government just sees this island as a cash cow and the States need to fight Guernsey’s corner more vociferously.’
Deputy Morgan insisted the States had tried to secure cheaper fees and would continue to do so, but the UK Government’s response had so far been ‘cool’.
However, panel member Professor Richard Conder, who is chief executive of the Guernsey Training Agency, argued that success would be unlikely because the island was not in a position to negotiate.
The former chancellor of Bournemouth University said the States had already secured students the best deal they were likely to get and should be cautious not to jeopardise the already advantageous agreement.
‘I have to pay tribute to the work that’s been done - we negotiated a much better position than we are probably entitled to. Most universities are broke and they look to international students for money. They would like to charge more than they already do.’
It was explained that what is charged to local students is actually the correct economic amount. In the UK, the Higher Education Fund Council picks up some of the cost for each student, but because local students don’t qualify for any assistance from the council, they are charged the real cost of tuition, making an agreement on lower fees very unlikely.
Other concerns from parents included the interest rate on the proposed loans - base rate until graduation, and at one percent over base until repayment within 12 years. Some feared that it would be used to make a profit, but were reassured the Treasury was only charging what it costs to borrow the money in the first place.
There were also queries raised about the fairness of only giving tax relief on loan interest for students who return to the island. It was argued by one member of the audience that it would be unfair because of the number of graduates who have to work abroad in their chosen field. But it was said the States do not have the jurisdiction to give tax relief to those living in the UK.
Another major concern was the future of post-graduate funding. Deputy John Gollop asked why there hadn’t been more focus on it, especially when the number of post-grad students was certain to increase. It is proposed that they will have the opportunity to reapply for another loan, but this could prove to be difficult with an existing debt caused by an undergraduate loan. The panel said that further details needed to be clarified.
Despite the criticisms, Deputy Morgan defended the plan. If Treasury and Resources were unwilling to continue funding the grants system, she said loans were the only viable alternative.
‘People are reluctant to see that we are not stopping funding. We will still be contributing just as much towards higher education, but we are just changing the structure to protect the lower paid families and make it more bearable for everyone else. Unfortunately, as with everything else, the middle income families might feel the change more.’
But Mr Farrell thinks the consequences could be far reaching.
‘It’s extra debt on that student and that eventually becomes the family’s debt. Everybody ends up paying.’
The decision about student loans will be made in the House at the end of the month.
Article posted on 19th October, 2007 - 12.00am
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