Grade requirement for student loans would cut a financial lifeline for English universities

If universities thought a Labour government would quickly revive their financial stability, those days are over. The vibes may have improved but little else has, with rising costs remorselessly squeezing their budgets and universities having to cut or close departments. Prestigious universities such as Nottingham were hit after tougher visa restrictions skewered their strategy of relying on overseas students paying higher tuition fees. But the latest policy out of Whitehall – introducing minimum grade requirements to qualify for student loans in England – is set to hit a different group of universities: those that take on students with no formal or recognised qualifications. Last year 33,000 domestic students enrolled in full-time, first degree courses without a single GCSE or equivalent qualification – just over 6% of the total signing up that year. A policy of restricting access to student loans to those with at least a single pass at GCSE level could cost the sector more than £200m a year in forgone fees. But some students will not neatly fall into qualified or unqualified categories. Some were students who have taken foundation courses, which are designed to prepare those without qualifications for university. In other cases they may have been UK residents with diplomas or certificates from overseas that were not easily recognised. …