2004 Education Act

The Higher Education Act 2004

• Fixed rate of £1,125 fees per annum can now be replaced by variable fees between £0 and £3,000 per annum.
• To charge more than the basic amount of £1,125 a university must produce an appropriate plan or ‘access agreement’, which details how students from poorer backgrounds will be encouraged to participate. These plans are subject to approval and review by a newly created Office for Fair Access (OFFA).
• The Government pays universities the fees up front on behalf of the student, who then pays the loan back on graduation as a percentage of their income above £15,000.
• The payment rates are earnings-based, so that fee payments fluctuate in line with the graduate’s salary. If their salary falls below £15,000, payments are no longer taken.
• Any amount of a student's fees still outstanding after 25 years will be cancelled.
• The top rate of £3,000 per annum cannot be increased without a motion being passed in both Houses of Parliament, and the Government has promised not to propose such a motion before a review of the current fees regime in 2009.
• As part of the "package" of this reform, increased Government grants, of up to 2,700, which is means tested on parental income.
• Introduction of a bursary scheme. All universities charging £3,000 have to offer a means tested bursary of £300 minimum.
• Following the implementation of the Act, all but seven universities opted to charge the maximum £3,000 fee and no university opted to charge the minimum fee.