DEFERRED FEES FOR UNIVERSITIES

Neil Shephard ()

Economic Affairs, 2010, vol. 30, issue 2, 40-44

Abstract: Each English university should be allowed to introduce its own ‘deferred fees’ on top of the existing national funding structure. Each graduate would only have to pay these fees to its university if their income rises beyond the point of paying off their maintenance and state tuition loans. I show these new fees are fiscally neutral, highly progressive and have no impact on the state or the financial position of the universities which do not introduce such fees. They have the potential to provide a long‐run solution to the repeated underfunding of undergraduate education at a number of English universities and reduce the fiscal pressure the state is under.

Date: 2010
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