1. Tuition should be free: As a matter of principle we believe that education should be free and that no one should be denied access to learning because they cannot afford it. The simplest and most cost effective way of achieving this objective is to ensure that tuition is free for everyone.



2. Top-up fees will not solve the funding problem: Everybody agrees that universities need more money. The question is, where should the money come from? The Government says that top-up fees are needed in order to create "a more sustainable funding regime". But exactly the same argument was used to justify tuition fees. Instead, funding per student by the taxpayer was cut during Labour's first term in office and tuition fees merely plugged the gap, leaving universities no better off. The same is likely to happen with top-up fees.
   Ministers are yet to provide a coherent assessment of how much they think the higher education sector actually needs. Nor can Ministers be sure how much top-up fees would actually generate, since it depends on student numbers and the fee levels charged by different institutions for different courses. It is a little odd to say that top-up fees are the answer to the "funding gap" in higher education, when no official assessment has been made of how big that gap is or of whether top-up fees would raise enough money to fill it!



3. Top-up fees are unfair:
   
   Tuition fees widened the gap between social classes
   
   The 1998 reforms widened the gap between the social classes. This is the conclusion of the independent National Audit Office, the Government's own research contained in the Student Income and Expenditure Survey 2002-2003, and even the Government's White Paper, which concedes: "The social class gap among those entering higher education is unacceptably wide" and "has widened."
   
   Fees and debt a disincentive to the least well off
   
   Tuition fees are a significant disincentive to higher education entry, particularly for those from non-traditional backgrounds. Top-up fees would make the situation far worse. This is the conclusion of the Government's own research, conducted by Professor Claire Callender of South Bank University, who says: "Top-up fees of £3000 will put even more poor students off university."
   
   The debt burden hits the poorest most of all
   
   Recent surveys show that the debt burden is increasing and will increase still further when top-up fees are introduced. The Student Income and Expenditure Survey finds that, in 2002-2003, the poorest students were 43% more in debt than the richest. According to Barclay's 10th Annual Survey of Expected Student Debt conducted in February 2004, projected average debt on graduation is £12,069 (up 10% on the previous year). A second study by Barclays Bank estimates that average student debt on graduation will triple by 2010, to £33,708.
   
   More students taking up longer hours of paid work
   
   The Student Income and Expenditure Survey 2002-2003 finds that 58% of students took paid employment in term time in 2002-2003 compared to 47% in 1998-1999. On average, they worked 14 hours per week. The students who were most dependent on paid work and worked the longest hours were from the poorest families. This has inevitable consequences for academic attainment and the quality of the university experience. Research carried out at Newcastle University suggests that 35% of their students who have a job could achieve a higher grade for the year if they were not in employment.
   
   Students on longer courses hit
   
   The situation is particularly bad for students on longer courses, such as medical students, as confirmed by the annual British Medical Association (BMA) survey of medical students' finances.
   
   The repayment system is unfair
   
   The post-graduation repayment system will impose what amounts to a very high marginal rate of income tax (higher than the rate paid by a millionaire) on those least able to pay - young graduates just out of college and those working in lower paid jobs in the public services and voluntary sector (disproportionately women and from the ethnic minorities). The House of Commons Library concludes that graduates earning as low as £35,115 are already paying a marginal tax rate of 50%, as they pay off their student loans. They will be doing so for a great deal longer to pay off much greater debts if top-up fees are introduced as the Government proposes. The Library figures also reveal that graduates earning as little as £15,000 will pay a marginal tax rate of 42%, more than the current marginal rate for the very highest earners. Remember - the amount students pay back is not income contingent. Your income determines the length of time you spend paying you debts, not the amount of that debt. Those on low incomes - working, say, in the public services - will simply be in debt for longer. Not only is this grossly unfair. It is also a considerable disincentive to taking up jobs in the public or voluntary sectors with relatively low salaries, and a considerable incentive to take jobs abroad.



4. The Government's scheme is inefficient: The Government is switching from up-front fees to post-graduation repayment via the student loan system. The cost to the taxpayer of financing this debt will be substantial. The Explanatory Notes published alongside the Higher Education Bill indicate that, in order to raise £1 billion for universities in top-up fees income, the cost to the taxpayer will be in the region of £445 million.

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What's the Lib Dem alternative?

1. Abolish all tuition fees: We would get rid of the present £1125 fee imposed on students and guarantee not to charge any top-up fees.



2. Re-introduce maintenance grants of up to £2000 towards living costs for students from low-income homes and restore students’ right to housing and unemployment benefits during the summer.



3. Put more resources into the university sector to help recruit and retain good staff and improve the quality of the buildings, libraries, etc.



4. Develop a 21st century higher education system which would bring together universities, further education and e-learning, open up routes to technical and vocational as well as academic qualifications and make it easier for those who wish to study part-time.



5. Fund these commitments from progressive taxation: from the revenues raised by our proposed 50% income tax band for those earning over £100,000.





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