Analysis: Estimating the effects of potential changes in fees and the conditions of student loans

Date: 01.08.2017
The Times recently published an article suggesting that the Chancellor is considering altering both the maximum level of tuition fees and the conditions of student loans.;Reportedly, these changes would include: cutting undergraduate tuition fees by £1,750 from £9,250 to £7,500, increasing the repayment threshold from £21,000 to £25,000, and reducing the interest rates students pay for their loans. Universities would be partly compensated for the cut in fees with a £1,500 top up for each student enrolled in a STEM degree.;If the Times sources are right, the government may unveil new plans for student and university funding either at the Conservative Party Conference starting on Sunday or in the Autumn Budget in November. Assuming the details of the article are accurate, many details still remain unknown, such as whether or how much fees would vary by subject or university.;We have nevertheless modelled three possible scenarios based on the proposals set out in The Times, estimating the impacts they would have on students and government