• Monday, November 9, 2009
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British Government Cuts Student Grants

To help offset a shortfall in its higher-education budget, the British government announced today a reduction in the maximum family income at which university students would be eligible for financial-aid grants. The move, which applies to university students in England beginning their studies in 2009, is the result of a miscalculation of the number of students who would be eligible for the assistance.

In a statement announcing the change, John Denham, the secretary of state for innovation, universities, and skills, said that reducing the income threshold at which students were eligible for partial grants, from £60,000 to £50,020 ($78,090), would “reduce the cost pressure” on the government by £100-million ($156-million). The budget gap is about twice that amount. The threshold at which students are eligible for a full grant will remain at £25,000.

In response to the government’s decision, the president of the National Union of Students, Britain’s main student group, issued a statement saying that “the measures laid out by the government to compensate for this will inevitably hit new students from middle-income families at a time when they are struggling to cope with the impact of the credit crunch.” He went on to say that the government must “recognize that the entire higher-education funding system is unsustainable” and needs a “proper review.” Such a review is scheduled to take place next year.

The Guardian had reported over the weekend that the government was considering such a move. In an article published on Saturday, sources said the problem stemmed “from the rushed creation of the Department for Innovation, Universities, and Skills and the sudden announcement of a massive expansion of student grants” immediately after Gordon Brown became prime minister, in July 2007. —Aisha Labi

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