We have constructed a new student finance calculator, based on our detailed analysis of graduate earnings and the student finance system, which allows users to look at the effects of changing any parameter of the system.
This Election Briefing Note provides a summary of the current higher education funding system in England and investigates the two big reform packages that are currently on the table going into the 2019 General Election.
To understand and design student loan systems, realistic earnings and/or income projections for current and future graduates are crucial. In this paper, Current Population Survey (CPS) data from the US is used to demonstrate empirical approaches that can be exploited to simulate lifetime income and earnings profiles for graduates which are needed to understand and design effective and sustainable student loan systems.
In October, the Prime Minister called for an inquiry into the student loan system for higher education (HE). In this briefing note, we focus on two of the more unpopular features of the current system. We explore government options for reducing the interest rates charged on student loans, from the current levels of RPI + 3% while studying and RPI + 0–3% (depending on income) after leaving university, and for reintroducing living-cost grants – which do not have to be repaid – for students from lower-income families. This briefing note will be submitted as evidence for the inquiry.
On Sunday, the Prime Minister Theresa May announced that the income threshold above which graduates start making repayments on their student loans would be increased from £21,000 to £25,000 for all those who started university after 2012, and that the cap on tuition fees at English universities would be frozen at its current level of £9,250. This briefing note examimnes the impact on graduates, public finances and universities.
The Department for Business, Innovation and Skills launched a public consultation regarding the proposal on 22 July 2015. This short note was submitted to the consultation and extends the work of Briefing Note 174 (Britton, Crawford and Dearden, 2015), analysing the likely implications of the proposed changes for students entering university in 2016-17.
Nearly three-quarters of graduates will not clear their student loans before the end of the repayment period. This means the large majority of those who go to university aged 18 or 19 will still be paying off their loans well into their forties and early fifties. This article summarises a report published by the Institute for Fiscal Studies, and funded by the Sutton Trust.
The Government’s controversial reforms to higher education funding - involving an increase in the cap on tuition fees to £9,000 per year and the removal of most direct funding for universities - have this month been implemented. However, the new system is substantially more progressive than its predecessor, as the richest graduates are likely to repay ten times as much as the poorest, and would even pay back more than the value of what they borrowed. Here we summarise IFS research assessing who wins and who loses from these reforms.
This paper investigates the financial implications of the higher education funding regime to be introduced in English universities in September 2012. The analysis is based on simulated lifetime earnings profiles among graduates, linked to imputed information on parental incomes and institution and course choices.