Tuition fee increase will hit middle-income graduates

Putting tuition fees up to £7,000 will leave middle-income graduates repaying up to £15,000 more tha

There has been concern expressed that raising tuition fees will deter students from applying to university, but new research suggests that a potential cutback on subsidised interest for student loans is where the real danger lies.

A report from the Social Market Foundation (SMF) has found that the proposed rise in tuition fees will leave middle-income graduates with much larger debts than their higher-paid contemporaries, as the increased fees bill will result in the government being forced to withdraw subsidised interest rates for student loans.

If, as expected, Lord Browne's review of university fees and finances (due for publication on October 11) recommends lifting the cap on tuition fees from its current level at £3,290 to £7,000, the SMF research finds that the rise in fees will cost the government an additional £1.3bn a year under the current arrangement of subsidised interest rates on student loans.

As this is obviously unsustainable, the research predicts that interest rate subsidies and loan write-offs would have to be abolished in favour of commercial rates, which would penalise those middle-income graduates who take longer to pay back the entirety of their loan. The SMF estimates that it could leave some graduates paying back up to £15,000 more than their higher-earning counterparts, even if they originally did the same degree at the same university.

In addition to the students and graduates who look likely to suffer under tuition fee increases, this issue is shaping up to be a major political challenge for the coalition. The publication of Lord Browne's review on October 11 will be the first major test of its unity, for as my colleague Samira Shackle pointed out last week, opposing such an increase in the debt burden on students has long been a central policy for the Lib Dems. Their response to the publication of Lord Browne's review will be a key indicator of how things stand within their party, and quite how long we might expect the coalition to hold up in its current form.

Caroline Crampton is web editor of the New Statesman.

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“Trembling, shaking / Oh, my heart is aching”: the EU out campaign song will give you chills

But not in a good way.

You know the story. Some old guys with vague dreams of empire want Britain to leave the European Union. They’ve been kicking up such a big fuss over the past few years that the government is letting the public decide.

And what is it that sways a largely politically indifferent electorate? Strikes hope in their hearts for a mildly less bureaucratic yet dangerously human rights-free future? An anthem, of course!

Originally by Carly You’re so Vain Simon, this is the song the Leave.EU campaign (Nigel Farage’s chosen group) has chosen. It is performed by the singer Antonia Suñer, for whom freedom from the technofederalists couldn’t come any suñer.

Here are the lyrics, of which your mole has done a close reading. But essentially it’s just nature imagery with fascist undertones and some heartburn.

"Let the river run

"Let all the dreamers

"Wake the nation.

"Come, the new Jerusalem."

Don’t use a river metaphor in anything political, unless you actively want to evoke Enoch Powell. Also, Jerusalem? That’s a bit... strong, isn’t it? Heavy connotations of being a little bit too Englandy.

"Silver cities rise,

"The morning lights,

"The streets that meet them,

"And sirens call them on

"With a song."

Sirens and streets. Doesn’t sound like a wholly un-authoritarian view of the UK’s EU-free future to me.

"It’s asking for the taking,

"Trembling, shaking,

"Oh, my heart is aching."

A reference to the elderly nature of many of the UK’s eurosceptics, perhaps?

"We’re coming to the edge,

"Running on the water,

"Coming through the fog,

"Your sons and daughters."

I feel like this is something to do with the hosepipe ban.

"We the great and small,

"Stand on a star,

"And blaze a trail of desire,

"Through the dark’ning dawn."

Everyone will have to speak this kind of English in the new Jerusalem, m'lady, oft with shorten’d words which will leave you feeling cringéd.

"It’s asking for the taking.

"Come run with me now,

"The sky is the colour of blue,

"You’ve never even seen,

"In the eyes of your lover."

I think this means: no one has ever loved anyone with the same colour eyes as the EU flag.

I'm a mole, innit.