66 | INSIGHT | F INANCE & MARKETS 54 | NEWS | F INANCE AND MARKETS


W: www.universitybusiness.co.uk | T: @UB_UK


W: www.universitybusiness.co.uk | T: @UB_UK


W: www.universitybusiness.co.uk | T: @UB_UK


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Call to fi x international student fees


Over 180 student unions from across the UK have signed an open let er to David Willet s, Vince Cable, vice- chancellors and universities calling on them to fi x international students’ fees. The campaign, launched


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Veale Wasbrough Vizards has a national reputation for experience and expertise on legal issues spanning the education spectrum from ‘nurseries to universities’.


We can advise your university on the full range of legal issues including:


• HR and employment • good governance • constitutional issues • student issues including appeals, academic misconduct, immigration and the OIA


• estates issues • capital funding • intellectual property law


• licensing • spin-outs as well as commercial contracts and joint ventures


• consortium arrangements (including international agreements)


• procurement processes including EU regulations.


To arrange a free no obligation review of your legal issues, please contact:


Bettina Rigg


brigg@vwv.co.uk T 020 7665 0960 M 07885 263 839


David Hansom


dhansom@vwv.co.uk T 020 7665 0808 M 07500 708 619


by the National Union of Students (NUS), seeks to draw at ention to the issue and launch a petition. Via its website, the NUS


stated: “Each year, up to 175,000 international students in our campuses fi nd their fees increase often without notice, reason or support. “We are calling on vice-


5


chancellors and principals of UK institutions to agree to a fi xed rate for international student fees, protecting students from unanticipated and unfair increases in their fees throughout their course.” The NUS continued:


One of the key changes forthcoming is the ability for institutions to use the negotiated procedure for anything other than 'off -the-shelf' purchases. What is important is that the process is structured in a way which is suitably transparent, non discriminatory and ensures equality of treatment to all participants. The Cabinet Offi ce has suggested that it would like to adopt the new rules as soon as possible so that UK contracting authorities can take advantage of new fl exibilities more quickly. Practically, issues to start thinking about now include updating your standard documents and purchasing rules, auditing your current contracts to identify expiry dates/ re- procurement obligations and running training for your teams.


“Without regulation or fi xed fees, many international students begin programmes without any idea how much their fees will be each year. Some fi nd themselves unable to continue due to the rising costs each year. “A recent campaign by


A new way to raise fi nance In July 2013 the University of Manchester issued £300m worth of bonds, carrying an interest


rate coupon of 4.25% and due for repayment in 2053. Manchester is not the fi rst HE institution to issue bonds on the capital markets as a way of raising funds. In 2012, the University of Cambridge and De Montford University became the fi rst HE institutions to issue public bonds since the University of Greenwich in 1998 – both obtaining approval from the Higher Education Funding Council for England in order to do so.


Edinburgh University Students’ Association found some international students were unable to travel home to see their families or aff ord course resources when their fees go up unexpectedly. “In addition, these kinds


These bond issues refl ect the view of the Russell Group expressed in May 2010 that universities should be able to raise funds by issuing bonds. There are some obvious advantages to the issue of a


of increases make a huge diff erence to retention, as NUS Pound in Your Pocket research shows: students who pay unexpected additional costs of £1,000 or more are three times more likely to consider leaving their programme. “Our fi xed fees campaign


bond in comparison to e.g. securing a loan facility from a bank. The sums that can be raised are potentially very signifi cant. HE institutions which are in a relatively strong fi nancial position and with a strong reputation are likely to be able to borrow over the long term and relatively cheaply. This is refl ected in the credit ratings assigned to the bond issues – Cambridge's £350m issue received an AAA rating from rating agency Moody's; Manchester and De Montford's bonds were given the second highest rating (Aa1). There are also likely to be fewer restrictions on an HE institution under the terms of a bond issue than under a loan facility. Issuing a bond is not a straightforward exercise and raises a range of fi nancial, governance, tax and legal issues; but these may well be justifi ed given the potential advantages of accessing credit via the capital markets. UB


has one simple goal: to abolish in-course fee increases.”


“Without regulation or fixed fees, many international


students begin programmes without any idea how much their fees will be each year”


Bet ina Rigg


www.vwv.co.uk Veale Wasbrough Vizards LLP


is Head of Higher Education at Veale Wasbrough Vizards (VWV) which is Legal 500 regional public sector law fi rm of the year 2013. For more information and advice on these or any other issues you may be facing please contact Bettina Rigg on 020 7665 0960 or at brigg@vwv.co.uk.


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