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The Augar Review in Detail

Posted by Richard Ward

Image courtesy of Flickr, Creative Commons

The Augar review commission by the Government to report on further and higher education has now been released and includes detailed recommendations to changes in student finance in England.

The key proposals for higher education are:

- Reducing the maximum annual fees universities can charge from £9,250 to £7,500 per year

- Unpaid loans will be cancelled 40 years after graduation, instead of 30 years

- A reduction in the amount graduates need to earn before they would have to start paying back their loans, which would fall from £25,725 to £23,000

- Reinstating maintenance grants for poorer students

Whilst a reduction in yearly fees may seem like a positive step, the Office for Budget Responsibility (OBR) estimates that only 38% of loans and interest will be paid.

Therefore, with an extra decade to repay outstanding debt, middle earners will pay more than they do under the current system, whilst the lower earners will begin paying back their debts sooner.

Moreover, whilst the highest earners would still pay the most, they would pay less then they do currently.

The proposals are, therefore, seen as less progressive than the current system.

With the report being written for Theresa May, there is no guarantee that the recommendations will be implemented once a new Prime Minister is elected.