A political trauma, but a policy success” – the FT’s verdict on tuition fees (High Peak Liberal Democrats)

One year on from what remains, for many Liberal Democrats, the most traumatic decision yet taken by the coalition, the FT (via an editorial in the newspaper) has provided its assessment of the policy.

Here's what the newspaper says on the policy itself:

Many academics and students continue to grumble about the move to charge undergraduates for their tuition costs. But governments looking for ways to reduce their outgoings should consider raising such charges - so long as they do it fairly, as the UK has.

It is a big concern that high college fees - and the fear of them - prevent middle class families in the US from getting the most out of higher education. Even where generous support exists, it can be difficult to understand.

This is a problem: it is a hallmark of an open, liberal society that class, privilege and prestige should not be hereditary. If charging more meant that poor children turned into poor adults, it would not be acceptable.

But governments cannot simply ladle cash out to universities - not least because good universities should answer to students, not finance ministers. In any case, the main beneficiaries of education are the people who receive it: they really ought to pay.

There is a way to square the circle. The UK government uses a method of funding universities whose principles could profitably be replicated around the world - the so-called "income contingent loan". UK students are all eligible for a state loan, so none must find cash up-front. Repayments are due only when graduates can afford it. If they fall out of work or take a low-paid job, the repayments are paused and the interest rate drops.

And here's what the newspaper says about the role the Liberal Democrats played in taking the decision:

Sadly, support for raising tuition fees has been toxic for the Liberal Democrats, who dropped their admittedly overly strident pre-election opposition to the policy. The party's poll ratings, which had been in the 20s before the May election, crumbled throughout 2010 to a plateau of about 10 points.

Most of these voters had probably abandoned the Lib Dems before the controversy over tuition fees. But the reversal on student fees has damaged Nick Clegg, party leader, especially among the rank-and-file. (It is not obvious that the Conservative leadership has made a sacrifice of similar size for the coalition)

The FT's conclusion:

Voters may not thank them for it, but the fee and loan system is a policy legacy of which the Lib Dems can be proud. In an age of political timidity, Nick Clegg's decision was correct - and courageous.

You can find the whole piece here.