Loans issue could deter students

There are proposals to repay £3,000 loans over 12 years

Some families in Guernsey will no longer send their children to university because of student loans, a teachers' union member has warned.

Caroline Bowker, a NASUWT representative, said she was disappointed and surprised the States had voted against a 40% budget rise.

The increase, to cover the cost of more students going to higher education, was rejected by the States on Friday.

The deputy education minister said families on low incomes would get help.

Ms Bowker said students were being "sold short", compared to Scotland, Gibraltar and the Isle of Man which offered free tuition.

You have to have money to pay for it and that is not available Wendy Morgan, Deputy Education Minister

"We were so anxious to follow the Isle of Man with respect to zero corporation tax, so why don't we rush and follow them on the issue of free student loans", she said.

But Deputy Minister Wendy Morgan said Guernsey could not afford to fully subsidise higher education like some other jurisdictions

"The Isle of Man has a very large GST [goods and sales tax] and therefore is a very successful, wealthy economy," she told BBC News.

"GST is not being introduced here and for every single thing that happens, you have to have money to pay for it and that is not available."

There was no indication students would not want to go to university because of loans, Ms Morgan added.

The department is proposing loans of up to £3,000 are paid back over a maximum of 12 years.