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New Hepi report on student loans

October 25, 2012

John Thompson and Bahram Bekhradnia of Higher Education Policy Institute have just published a new report, The Cost of the Government’s reforms of the financing of higher education.

It provides substantial support for some of the issues I raised in ‘False Accounting?‘. In particular, it provides a more robust assessment of the impact of tuition fees on the Consumer Price Index and reviews the current assumptions about future graduate earnings. Their conclusion is that as a result of hidden costs and unrealistic assumptions, the government’s claimed savings of £1.3billion will be closer to £0.3billion on their most conservative estimate.

The Independent covered the report on their front page: ‘Unishambles’.

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