Navigating the stormy waters of UK public spending cutbacks

The University of Exeter has calculated it will need to charge around £7,200 a year simply to replace income lost as a result of public funding cutbacks. However, we will not be deciding on a fee until the New Year. If Parliament votes for the government’s proposals then the first students to be admitted under the new fees structure will begin their studies in 2012. It is important to note there is no Plan B and Browne represents the only option for retaining a world class higher education system in the UK.

In essence, Browne means the replacement of public sector funds by student fees. The principle of students not having to pay up front has been retained.  Graduates will repay the cost of their education only when they are employed and earning above £21k.  Repayment rates on loans will be at 9% of salary over £21k.  Debt will be forgiven after 30 years. The Government says around a quarter of graduates, those with the lowest lifetime earnings, will pay less than they do at present.

Students from families with incomes of up to £25,000 will be entitled to a more generous student maintenance grant of up to £3,250 and those from families with incomes up to £42,000 will be entitled to a partial grant. Maintenance loans will be available for students from families with incomes up to £60,000.

Combined, these two reviews bring about a major funding shift. If voted through it will mean student tuition fees will be the University of Exeter’s largest single source of income. Our students will expect even higher standards of service so delivering a high-quality experience to them will be paramount. Delivering good employment prospects will also be key and the University is already targeting this area. The delivery of our £300m investment programme across the University could not have been better timed – it will provide the sort of facilities upon which our students will rightly insist.

The University of Exeter has been well prepared for these changes and is in a strong financial position; indeed we have been reducing our reliance on public sector funding. It will mean some changes to the way we do things but with our dedicated staff, Guild, alumni and supporters we believe we have a very strong and exciting future, delivering first class education and experience to our students.