about penalty for charging high tuition fees
Due to the fact that private universities are going to charge higher fees from students than allowed, the coalition considers that implementation of a Soviet-style central intervention policy would be an effective fine for such universities. Vince Cable
and David Willets
consider that universities that charge too much should face fines as much as £3,000 per student if it over-recruits in a single year. It is the government that sets the grant and numbers for each university through the Higher Education Funding Council. Moreover, the government is going to cut funding from universities that unreasonably charge fees from 2012-13. Universities are likely to charge more than £8,000 a year and those that will charge the maximum £9,000 fee will be fined.
Nick Clegg, the deputy prime minister, broke into abuse regarding the possibility of private universities charging £9,000 with the purpose of showing off. He said: "I cannot think of anything more absurd than a university saying, to prove that they can offer a good education, they can whack up the price to £9,000. They are not Harrods."
Vince Cable, the business secretary whose department is responsible for universities, was worrying about the number of universities that planned to charge the maximum fees. He acknowledged that instable situation over coalition’ crackdown on visas for overseas students made some universities increase fees as an insurance policy against a possible £2bn annual loss of income. He also points out that the reason for raising fees is the uncertainty over the future of teacher training and medical training.
Ministers claimed that the maximum fee should only be applied by universities under "exceptional circumstances". Those universities which are going to charge more than £6,000 would have to find ways to involve disadvantaged students.