UK backs university funding plans, seeks input

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— “Fee hike won’t affect Cyprus students” —

Cap to rise from GBP 3,300 to 7,000

The British government gave broad backing on Tuesday to plans to increase the amount students pay for university tuition, but said it would listen to suggestions before drawing up final plans.
"The government endorses the main thrust of the report, but we're open to suggestions from inside and outside the House (of Commons) over the next few weeks before making specific recommendations to parliament with a view to implementing the changes for students entering higher education in autumn 2012," Business Secretary Vince Cable told parliament.
More than 7,000 students from Cyprus are enrolled in British universities, according to the latest available statistics, accounting for nearly 31% of all Cypriots studying abroad. Their contribution in terms of tuition fees and payments for the dormitories amounted to EUR 16.8 mln.
But experts say that any change in the fee paying policy in the U.K. will not affect the studying preferences of Cypriots.
“Ever since the fees came down for Cypriots in 2004 (after EU accession) the number of students going abroad from Cyprus continues to rise, with parents here known to place higher education as their Number 1 priority,” said Marlene Philippou of Smart Options, a recruitment and counseling firm that advises some 700 pre-university and high school students a year.
“Very competitive universities want to raise their fees and become autonomous in a highly competitive environment, but we have yet to be informed by any university in the U.K. or from the British Council,” Philippou said.
She added that a lot more information should be available at the next higher education exhibition in November.
Dr Nicos Peristianis, President of the Council of the University of Nicosia, said that his research team will soon be releasing a study that looks into and compares the level of funding of universities in many countries, including the U.S. and the U.K.
“We don’t expect any major impact on the higher education preferences of Cypriot students in the short term, as many universities, including those in Britain, should raise their fees to approach the ‘market value’ which we estimate at GBP 18,000 to 20,000 a year,” Peristianis said.
He added that Cypriots who choose to study in the U.K. can be placed in two categories: those who choose to go to premium universities and are from well-to-do families, hence their choice will not be affected by higher fees; and, a large number of students who can’t make it into the top grade universities and opt for next-grade universities.
“Those in the second category will simply move on to other universities that will probably lower their entrance and progression levels,” Peristianis added.

COMPARISON

While Britain is considering removing all limits on university tuition fees, public universities elsewhere in Europe charge far less or nothing for undergraduate education.
A government-commissioned review published on Tuesday recommended that universities in England should be freed from restrictions on the amount they charge students, raising the cap from the current GBP 3,290 a year to levels of up to 7,000 a year, some analysts said. This will increase the burden on students repaying their loans once they get a job or earn more in a year than their tuition fees.
The review, led by former BP chief executive John Browne, called for a transformation of the financing of higher education in England to create a free market in university provision.
Fees in several countries vary by region or by course, but in comparison tuition fees in England and Wales are estimated at EUR 3,770, while it is free in Scotland for Scottish and EU students and EUR 2,080 for other British students.
In the U.S., tuition fees for leading universities can rise to USD 50,000 (EUR 36,000), while in Canada it drops to USD 3,693.
Studying in the European Union is the cheapest with EUR 590 on average in Austria, 422 in Belgium, 173 in France, 920 in Spain, and free in Finland, Ireland and Sweden. In Germany, universities may charge up to 1,200, but as of May 2010, tuition fees for full-time students range from nothing to 500 euros per semester, while registration fees of about 100 euros per semester are separate from tuition fees.