This website uses cookies. Find out more.

  • Contact
  • Client Login
Chase de Vere
Trustpilot
  • Services
    • Advice for you
    • Advice for your business
    • Partner With Us
    • Advice on Personal Injury Awards
    • Advice for Medical Professionals
    • Advice for Dental Professionals
  • About
  • Careers
  • Insights
  • Contact
0345 609 2002 Book Appointment

Advice for you

Advice for your business

Partner With Us


Advice on Personal Injury Awards

(Off-site link)

READ MORE
Advice for Medical Professionals

(Off-site link)

READ MORE
Advice for Dental Professionals

(Off-site link)

READ MORE
Back to Insights
News

Student fees may be coming down

11 July 2019
  • Share

A government-commissioned report has proposed significant changes to the funding of university students in England.

Student residents in England (different rules apply in other parts of the UK) pay a maximum university tuition fee of £9,250 per year, financed by a student loan. Further loans to cover maintenance plus interest at RPI+3% mean that at the end of a three-year course graduates can start working life with £50,000 of debt. That debt is currently written off after 30 years, but until then repayments must be made at the rate of 9% of income above a threshold presently set at £25,725.

At the time of the last General Election, the Labour Party’s manifesto proposed scrapping future tuition fees at an estimated cost of £11.2bn a year – the party’s most expensive single measure.  The idea was predictably popular in many university towns and may have been enough to swing the vote in some of them. After the election the government responded by setting up an independent review of 18+ education in England.

That review, headed by Philip Augar, published its report in June. There was a long list of recommendations, including:

  • Reducing the maximum tuition fee to £7,250;
  • Cutting the earnings threshold for repayments by £2,000;
  • Introducing means-tested maintenance grants of up to £3,000;
  • Reducing the interest rate to match inflation during the period of study;
  • Capping total loan repayments at 120% of the loans drawn, revalued in line with inflation; and
  • Extending the loan repayment period to 40 years.

The proposals have one consequence which has raised a few eyebrows: they would reduce the total outlay for the highest earning graduates while increasing it significantly for middle earners.

Whether or not these ideas are adopted, they are a reminder of the eye-watering expense of higher education, both for students and the government. If you have children or grandchildren heading to university, the sooner you start planning for that cost, the better.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Content correct at time of writing and is intended for general information only and should not be construed as advice

  • Share

Related Insights

16 July 2018

Interest rates for the Eurozone and US diverge

Important interest rate announcements were made…

News
View Article
14 August 2018

Is the LISA’s short life about to end?

The Lifetime ISA (LISA) may not…

News
View Article
15 January 2019

Shake up your New Year’s resolutions

The time to resolve has returned.…

News
View Article

TO FIND OUT HOW CHASE DE VERE CAN HELP YOU ACHIEVE YOUR GOALS, ARRANGE YOUR COMPLIMENTARY CONSULTATION.

ARRANGE APPOINTMENT

Related Services

Advice for you

We offer our clients attentive, focused, financial guidance from highly qualified independent advisers located throughout the UK. Whether you’re saving for the future, enjoying your retirement or fu...

Learn more
JOIN OUR SUBSCRIPTION SERVICE TO RECEIVE:

EDUCATIONAL NEWS UPDATES & UPCOMING EVENTS

By signing up to our email subscription service we will send you regular emails with the latest insights from Chase de Vere. By signing up you are agreeing to our term and conditions that can be found here.

Chase de Vere
  • 0345 609 2002
  • client.services@chasedevere.co.uk
  • Home
  • About
  • Accessibility
  • Cookies
  • Gender Pay Gap Report
  • How to make a complaint
  • Insights
  • Modern Slavery Statement
  • Privacy
  • Terms of Use
  • Linkedin

Disclaimer:

Investments can go up and down in value, so you could get back less than you put in.
The Financial Conduct Authority does not regulate cash flow planning, tax or estate planning.

© Copyright Chase de Vere / 2025