Estimating the costs associated with the student support offer – December 2018

economics-of-education||106education||0higher-education||106labour-market-economics||106labour-markets||106
Sector:Economics of Education | Education and Labour Markets | Higher education | Labour market economics | Labour markets
Client:N/A
Published: 10 December, 2018
Document type:Report 
Tagged: 2018 education higher education modelling quantitative analysis UK

Following publication in the Telegraph of some possibilities emerging from the Augar review, London Economics have estimated the economic cost associated with reducing annual tuition fees to £6,500 (with no additional Teaching grant); removing real interest rates; and reducing the repayment threshold to £21,000. The result is a £2.8 billion reduction in funding (per cohort) for higher education institutions; a £1.8 bn saving for the Exchequer; and a £1.0 billion reduction in costs for students/graduates. However, it is the higher earning graduates that benefit to the greatest extent – with male graduates benefitting in particular – and female graduates having worse outcomes than currently the case.