|Practice area:||Economics of Education | Education and Labour Markets | Higher education|
|Published:||07 March, 2019|
|Keywords:||2019 education higher education modelling quantitative analysis UK|
In light of the Augar Review, London Economics were asked by AdvanceHE to present an analysis of the main issues affecting higher education fees and funding. The analysis presents some estimates of the potential impact associated with a reduction in the tuition fee level (to £7,500) as well as the reintroduction of maintenance grants. We also present some alternative options for fees and funding that would both positively impact recruitment and retention of students from less well-off backgrounds, but also reduce the economic cost of the loan subsidy incurred by the Exchequer. The analysis also assesses the impact of the recent Office for National Statistics’ review into the national accounting treatment of student loans on the deficit – and what this means for policy makers.