UK-style student loan scheme “not viable”

Wednesday 15 April 2015

Hopes for a loan scheme to support families with the high costs of university education have been dented, after the Education department said a UK-style scheme would not work.

Pressure has been growing on the States to provide some help to families – mainly because parents have been taking ministers to task at the regular Any Questions events organised by change.je, which let the public quiz politicians and business leaders about policies and issues.

And Education have confirmed that the amount that they pay in grants has dropped by £1.1 million since 2001, when at the same time the amount that parents are paying has gone up by £2.9 million.

In response to a written question on student loans in the States by Deputy Geoff Southern, the Education department have responded: “The Minister has had discussions with the Treasury Minister about potential options.

“These discussions are at an early stage but initial research would suggest that a pure loan scheme, similar to the UK, is not viable. Other options are now being pursued.”

That answer does not sit well with what Chief Minister Ian Gorst told an Any Questions audience in St Brelade.

At the time, he said: “We are going to have to, I believe, bring in some sort of loan scheme that mirrors what we do in the UK… that will leave students in some debt, but the quantum of that debt, I suppose, will depend on what interest and how we end up managing it.

“As I sit here, it seems to me that a mirroring of that UK system would be the most suitable solution."

The following month, Education Minister Rod Bryans revealed at the next event that he was meeting with the Treasury and the Community Savings Bank to try to make progress on the matter.