Students! Stop and think: Browne's reforms are great!

I wanted to begin by saying that I really don't understand why students dislike the Browne proposals. But the truth is that I do understand. I understand that students have seen the figure of £30,000 widely quoted and correctly worked out that this is more than they pay now. It then occurred to them that there would be no way for poorer students to afford that because they don't have £30,000. Then they heard someone mention a 'free market' and 'choice', and that made them really mad. So they decided these reforms are regressive, bad Tory cuts which will harm the poor and make university elitist.

They've thought about it for about as long as it took you to read that paragraph. Which is a shame. Because Lord Browne's reform is excellent.

The most important part is that you don't have to repay your loan until you earn £21,000 a year. That is brilliant. I wish I was that lucky. This measure, on its own, removes any argument that this reform unfairly impacts the poor. Because if you're poor all your fees are covered, and you don't pay back until you earn over £21,000. And if you're earning more than that you're not really poor any more are you! You've succeeded: you've come from a poor background, gone to uni, got a degree and got a good job after it. Well done.

And if you don't, then you don't pay. Your education will be free. FREE! What a great deal. £21,000 is so much fairer than the current £15,000, which almost all graduates will achieve. Yet even then, you don't just get a bill for the whole amount, you have a small percentage taken from your wages before you even see them. It will also increase with average earnings, so will not be fixed at £21,000 forever.

That leads into the second point about this system: you don't miss money you never had. The system will mean that university is FREE AT THE POINT OF USE. You will never see the money used to pay your fees, and you will never see the money that gets taken from your wages when you reach the threshold and start to pay your loan back. So much gets taken off in tax and NI anyway that having a little extra disappear to repay a loan - that helped you get your job earning over £21,000 - won't make any tangible difference. No-one is going to become destitute because of these repayments.

As I mentioned in my previous post, fear of debt has not put off poorer students from applying to university. In fact the opposite is true. Application numbers have increased dramatically. People clearly believe that university is a good path to success.

The problem with Browne's report is simply presentational. Using the words 'debt' and 'loan' makes students think, naturally, of a bank loan they must repay come what may. But this is not the case. It's not real debt, because if you don't earn over £21,000 it doesn't exist and whatever you haven't paid after 30 years gets written off.

There will also be more generous maintenance grants of £3,250 for students who come from households with incomes of less than £25,000. The upper threshold for students receiving partial maintenance grants will increase from £50,020 to £60,000, meaning more families will be get financial help. This will be supplemented by a flat-rate £3,750 maintenance loan which will no longer be means tested (yay!) and won't be paid back until you earn over £21,000.

The reforms also allow for funding to be extended to those completing part-time courses, who are not supported by the current system. This will make such courses much more appealing and will extend educational opportunities to millions of people who work and would like to do a part-time course but can't currently afford it. 

Browne's reforms also call for the universities to change some of their practices. For example they will be required to inform students up front how many contact hours they will have each week, so they can make informed decisions. There is also the hope, which may not be fulfilled, that universities will become more responsive to the needs of undergraduates. While this may not happen it is worth a shot, because at the minute they are not responsive and, frankly, inaction will not bring change either. 

Students will get their university experience totally free at the point of use and only have to pay money back once they earn over £21,000. Far from being penalised, the poor will be able to get the education they want knowing that it won't hurt them or their families financially. 

Today David Willetts will unveil the plan, and announce that when the reforms come in in September 2012 there will be two thresholds: £6,000 and £9,000 a year. Universities can charge what they like up to £9,000, but over £6,000 they have to demonstrate to the government that they are proactively encouraging students from poorer backgrounds. 

It already looks like one Lib Dem, Jenny Willott, MP for Cardiff Central and PPS to Chris Huhne, will resign over the matter. This is probably pretty helpful to the Lib Dems. Because of their election promises they can't be seen to totally support these measures even if the leadership does, and as their success in university seats is threatened they probably need a resignation to show students they care. It's a good move for her (she has a university seat in Wales) and for her party. I wouldn't expect to see any others go though.