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Ed Milliband’s tuition fee cut

| January 12, 2012 | 0 Comments

With the Conservative-Liberal Democrat Coalition leading a tuition fees increase in 2012, what’s the alternative? At this year’s Labour Party Conference, Ed Miliband, the Labour leader, made a pledge to cut the tuition fee amount if elected. So what does it mean for you?

£6,000 a year is the magic number. The limit that Ed Miliband would introduce to stop universities charging up to £9,000 a year for education.

When the Government increased the cap to £9,000 a year, it was backed up with the indication that this would only be for a select number of universities. Yet as time went on, more and more institutions said they were going to ask for the top amount. So surely £6,000 a year is better for potential students?

This reduction would cost the taxpayer a reported £800 million to introduce. Ed Miliband proposed two ways that this would be paid.

First, the corporation tax cut introduced by this government to promote business growth, would be reversed.

Second, graduates earning over £65,000 a year would pay a higher interest rate on their student loans. This means that those who are more successful would pay more back, making up the difference for everyone else.

The policy, an attempt to win over disillusioned Liberal Democrat voters, aims to gain the support of lower and middle income families who worry about sending their children to university.

So is it better?

The fee itself is much lower than the tuition fee rise to come in 2012 and so it seems logical that it would be better for potential students.

Many critics denied that it would benefit those it tries to attract, however, with some saying that due to the existing policy’s 30-year cut-off, many on lower incomes would actually end up paying more.

If you want to read our analysis of the tuition fees increase, click here.

Category: Articles & Advice

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