News - from the College and the Students
September 6th2008 - University funding is 'creaking'
- Source - BBC
The National Union of Students says England's system for funding higher education is unfair and reinforces existing social inequality.
In a report timed to influence the terms of a government review of the system, it says things will get worse if the cap on top-up fees is raised.
Financial support is based on where you study, not on need, it says.
Variable or "top-up" fees began in 2006 and are capped at £3,145 a year - but could rise in the future.
Parliament could vote for an increase after 2010. The Westminster government has said it will hold a review of the funding system once the first people to be affected by the changes have passed through the system.
It expects to finalise the terms of the review late next year.
In its report, Broke and Broken, the NUS says students will be faced with "staggering" debts if the current cap is raised substantially.
It is critical of the current system of bursaries offered by individual universities (which is on top of government support) and calls for a national system instead.
NUS president Wes Streeting said: "Market forces have already crept into our higher education system.
"More prestigious universities in the Russell Group are able to offer poorer students an average annual bursary of £1,791, but less prestigious universities are only able to offer £680.
"There is clearly a market of prestige at work, with financial support being based not on how much you need it but on where you study."
'Old arguments'
The union has decided to stop campaigning for fees to be abolished.
Mr Streeting said the report "was not for special pleading on the principle that education should be free".
"I believe it should be - but I know the debate has moved on and we won't win by dredging up the old arguments," he said.
The report says that if top-up fees were raised to £7,000, some students would end up owing almost £40,000 on graduation.
Higher Education Minister Bill Rammell said: "The new system is working, as is demonstrated by record levels of applications and acceptances, up by 6% this year.
"Record numbers of students from all social classes are choosing to go into higher education and reap the benefits this brings.
"This is at a time when the government has abolished
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