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Financing Higher Education in England: The Fiscal Implications of Reform

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  • Hantzsche, Arno
  • Young, Garry

Abstract

Undergraduate teaching in England is paid for mainly by tuition fees levied on students. Students in turn mainly pay for their tuition fees and living costs by taking out income-contingent student loans, underwritten by the government. New graduates typically leave university with student debt of around £50,000, though only around 30 per cent of graduates are expected to repay their loans in full. This paper assesses the fiscal implications of some recent proposals to reform the financing of higher education in England, including the recommendations of the 2019 Augar Review to amend the current system, a National Learning Entitlement, and more radical proposals to finance higher education out of general taxation or with an all-age graduate tax.

Suggested Citation

  • Hantzsche, Arno & Young, Garry, 2022. "Financing Higher Education in England: The Fiscal Implications of Reform," National Institute of Economic and Social Research (NIESR) Discussion Papers 539, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:539
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    File URL: https://www.niesr.ac.uk/wp-content/uploads/2022/08/DP539.pdf
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    References listed on IDEAS

    as
    1. Jack W. Britton & Jonathan Gruber, 2019. "Do Income Contingent Student Loan Programs Distort Earnings? Evidence from the UK," NBER Working Papers 25822, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    higher education; student loans; graduate tax; Augar Review;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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