No 100% increase in tertiary fees — Holness

Luke Douglas

Friday, July 30, 2010

GOVERNMENT yesterday moved swiftly to allay fears that tuition fees for tertiary students will double in just over a year from now, but gave notice that the fees will continue to increase over time as more funds are moved to the lower levels of the education system.

At a hastily-called press briefing at the Ministry of Education at Heroes' Circle, Education Minister Andrew Holness said tuition fees will increase gradually each year but that the Students' Loan Bureau (SLB) capital base would be expanded and conditions relaxed to meet the increasing demand for loans.

He also said the need for guarantors will be removed eventually and interest rates dropped from the current 12 per cent to make tertiary education more accessible.

Holness was responding to comments from SLB Executive Director Lenice Barnett, that tertiary fees may double in the 2011-2012 academic year, as Government reduces its subsidy on tertiary education from the current 80 per cent down to 60 per cent.

But this would not happen in one year, Holness said, adding that the country would be given adequate notice of any change.

"There will be nothing dramatic (in the increase in tertiary fees). Everything will be done in a gradual way, but probably what may be dramatic is the increase in the student loan capital base," Holness said.

He said that other reforms in the new SLB legislation to come before Parliament soon include:

* making student loans a part of the beneficiary's credit rating;

* expanded bonding of students;

* increasing the length of the loan, making it similar to a mortgage;

* linking payment to salary levels; and

* systems to ensure students who migrate continue to repay.

Holness said it was difficult to state from now the reduction in Government subsidy and subsequent increase in fees for 2011-2012.

Meanwhile, responding to news of impending reduction in government subsidy to tertiary students, the University of Technology (UTech) pointed out that the average subsidy to UTech students was 44 per cent.

Also commenting on the situation, Opposition spokesman on education Senator Basil Waite said a 100 per cent increase in tertiary fees "would make the pursuit of tertiary education the remit of the affluent".

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No 100% increase in tertiary fees — Holness