They are headed towards a crunch
have been the latest buzzkill: because of a marking boycott, thousands will graduate late or without a proper classification. At Cambridge, one of the worst-affected universities, half of final-year undergraduates are in that boat.
Today the government has a chillier view of the sector. One reason is money. Student borrowers in England enter a national repayment system that collects a share of earned income over a threshold . Any debt outstanding when borrowers approach retirement is forgiven. The designers of this system have always assumed that sizeable sums will be written-off in this way, writes Sam Freedman of the Institute for Government, a think-tank.
Muddled thinking on universities has led to muddled policies. One of the bigger recent reforms was the creation in 2018 of the. The regulator aims to give youngsters more certainty that their degrees are worth paying for. It puts useful pressure on those universities that have done a poor job of ensuring students finish their studies and find decent jobs.
One study using data from 2017-18 found that foreigners were on average paying £5,100 a year more than their courses cost to run. For years universities used these surpluses to subsidise research—an activity which bumps them up international league tables. But profits from foreigners are increasingly used to cover shortfalls from English students.
All this is going to get harder to handle if British parents start believing that foreigners squeeze their children out of places in their first-choice universities. Rejection rates at the most prestigious ones have been rising steadily. That is more to do with the national increase in university-going than with foreigners. But the crunch will only continue: because of a demographic boom, the number of 18-year-olds in Britain will be 25% higher in 2030 than it was in 2020.
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