Next Gen News

Government can encourage applicants to seek help from banks to pay for university places

Students are encouraged to borrow from banks to cover their tuition fees, according to the proposals discussed by the government as a way out of the funding crisis in higher education.

more universities are planning to charge the maximum £ 9,000 per year for tuition fees, universities minister David Willetts is looking for a way to reduce the government's commitments backed by student loan companies face British banks to lend at preferential rates.

universities in the UK, representing universities, was consulted. Its chairman, Sir Steve Smith, president of the University of Exeter, said the proposal to allow banks to tap the student market has enormous risks and could create a two-tier education system.

said that the Department of Innovation and Skills has proposed that students who take private loans include the allocation of university places will be awarded each by the government, making them attractive In order for universities to increase their liquidity.

Smith said that the subsequent risk of an education system of two highest levels were "bad" implications. "They [the government] talked to us about this, but the problem is that you have the obvious objection that it is much like the people who buy their entry"

Smith, who said he had been in talks with several banks on the subject, added: "The problem is that it is very difficult to get a system that makes really hard for people who attend less high-level institutions where students do not earn money [to repay the loans aa ]."

Observer

Smith says that banks come into play if the government or, more likely, the university has accepted responsibility for unpaid loans.