British government mulls replacing tution fees with graduate tax

The British government is seeking to change the tution fee system, replacing it with a variable graduate tax payable after completion of the graduate study.

Business secretary, Vince Cable believes that variable graduate tax could help make the education system fairer and sustainable as opposed to current system, which took no account of earnings.

As of now, government lends money to students to cover their course fees that are to be paid back when they start earning more than £15,000 a year.

Tuition fees were introduced by the Labour government in 1998.

The cost-cutting scheme also includes promoting two-year degrees, flexible and part time courses. Cable is also hoping for rise in private universities that could award degrees taught by established institutions.

Lord Browne, former BP chief executive, who is conducting an independent review of university fees and funding, has been asked by Cable to review the proposal.