STUDENT DEBT UP 12% (David Rendel)

STUDENT DEBT UP 12%

April 15, 2005 10:29 AM

Newbury's Liberal Democrat Candidate has called for all university tuition fees to be scrapped, after a new survey showing that student debt has increased by 12% in the past year.

Students face debts on graduation of £20,000, according to the 11th annual Barclays survey of student debt. This is even before top-up fees are introduced, which could hike debts up as high as £33,000 according to the bank.

The independent Institute of Fiscal Studies has confirmed that the best policy to reduce the student debt burden is the Liberal Democrat policy of scrapping all tuition fees. The Institute also says that the Conservative policy of commercial interest rates on student loans will make the problem worse.

Commenting, Mr Rendel, who is also the Liberal Democrat Spokesperson on Higher Education, said:

"Today's debt figures are bad news for the 4,000 students who live in West Berkshire. They are being unfairly taxed because they opted to pursue their education - and many will face still higher charges if the Conservatives ever get a chance to implement their policy of commercial interest rates on student loans.

"My policy is to scrap all university tuition fees and top-up fees, so that the student is not charged a penny. We should not be taxing people for going to university."

NOTES:

1) Recent opinion polls show a 12% Labour lead amongst students in 2001 has turned into a 11% Liberal Democrat lead now, with Tory support dropping away in a poor third place (Source: MORI and the Times Higher Education Supplement). Labour's policy of top-up fees and the Conservative policy of commercial interest rates on student loans are proving very unpopular on the door-step.

2) The 2001 census found that there are 3,768 students in the Newbury Constituency. If the opinion polls are correct, the swing to the Liberal Democrats amongst this group will make it considerably harder for the Conservatives to recapture this seat from the Liberal Democrats.

3) BBC Economics Correspondent, Evan Davis, commenting on Liberal Democrat policy on tuition and top-up fees: "Mr [Charles] Kennedy has had a warm welcome from students on this one and it's easy to see why. It [Liberal Democrat policy] will sharply cut student debt." (BBC News at 10, 7 April 2005)

4) The independent Institute for Fiscal Studies has compared Liberal Democrat and Conservative policy on student debt, and concluded: "Debt on graduation would be lower under the Liberal Democrats… Indeed outstanding debt could go up under the Conservatives for low earners, even as they repay."