Nick Barr, Professor of public economics at the LSE speaking at a recent seminar on the university funding system, thinks they should. Why? Well Nick reckons the blanket interest rate subsidy (i.e. having an interest

rate at the level of inflation rather than the cost of borrowing) costs the tax payer £1.2 billion and only benefits successful professionals in mid career. The argument is to save this money and spend it on ‘increasing access’ for poorer students.

Of course, the problem with this redistributive measure is its impact on student debt, an already touchy subject politically. So far student recruitment has not been adversely affected by introducing tuition fees, so there is reason to believe that ending the subsidy would similarly just be taken on the chin by the student body. So watch out folks … there maybe more pain to come for the ever suffering university student!

The collective university establishment breathed one long sign of relief today, the relief that comes from the knowledge that the impact of tuition fees has not meant doom

and gloom. Students aren’t saying no to debt in favour of plumbing courses or careers with Tesco, in fact they still want those degrees.

No doubt the Higher Education minister Bill Rammell is also breathing easier, let us never forget that his government brought tuition fees in after carefully avoiding mentioning the issue in any manifesto.

What is interesting is much of the buoyant recruitment lies in EU and foreign students, especially Cyprus and Polish students, who are flocking over here. This does put a different complexion on the headline figures.

And … healthy recruitment also means the green light for fees to rise, something the universities themselves have been pushing for (one Vice Chancellor interviewed today wanted to see £7,000 per year). Only a steep decline in numbers is going to cut the wind out of those sails, and the first real test has been past.