A group of 30 Tory MPs suggests barring low-achieving school leavers from accessing student loans as part of a crackdown on subpar university programs.
In a bid to improve the quality of university education and address concerns about the value for money offered by some courses, a coalition of 30 Conservative Members of Parliament (MPs) is advocating for stricter eligibility criteria for student loans. The New Conservatives group of MPs asserts that students who fail to achieve a grade 4 or above in GCSE English and maths or obtain at least three Es at A-level should be ineligible for student loans.
Key Points:
- The New Conservatives MPs argue that many low-quality university courses receive government funding through student loans, despite not delivering value for money.
- Approximately 25% of students are projected to fail to meet the £25,000 salary threshold for loan repayment a decade after graduation.
- Outstanding student loan debt reached £206 billion by March 2023, with estimates indicating it could climb to £460 billion by the mid-2040s.
The MPs, hailing primarily from Red Wall constituencies and representing the 2017 and 2019 intakes, have released a report outlining their proposed changes to the student loan system. Co-authored by former education minister Jonathan Gullis and Lia Nici MP, the report contends that many courses lack adequate contact hours and academic rigor, with graduates often unable to justify the accumulated debt based on their earning potential.
Furthermore, the MPs recommend an overhaul of the loan repayment system. Under their proposal, all graduates would begin repaying their loans at a fixed monthly amount of £45 after a three-year “grace period.” Once their income surpasses £31,000, repayments would switch to nine percent of their earnings. Exemptions would be granted for graduates in certain fields deemed of “high social value,” including those working in the NHS, charities, or registered as carers.
The New Conservatives group of MPs anticipates that their suggested changes would reduce the number of university students by 15 percent. The funds saved from these reforms would be redirected toward a significant expansion of apprenticeships, mirroring the German-style apprenticeship system.
The report asserts that the current loan repayment system disproportionately burdens taxpayers for degrees that provide limited societal or economic benefit, discouraging young people from pursuing vocational training or entering the workforce. In Germany, where 54 percent of young individuals complete apprenticeships compared to 10 percent in the UK, vocational education is highly regarded.
Polling data cited in the report suggests that these changes would find favor with parents, with 48 percent expressing a preference for their children to pursue vocational qualifications after leaving school, compared to 37 percent who favor university education.
This proposal from the New Conservatives group of MPs reflects growing concerns about the cost and quality of higher education in the UK, prompting a broader discussion about the value of university degrees and alternative pathways to career success.
