Higher education funding reforms in England: the distributional effects and the shifting balance of costs



feature of the income-contingent loan system, given its design, but this to our
knowledge represents the first empirical estimation of such distributional effects.

Table . Average graduate payments under new HE system (debt of £18,340), by
decile of graduate lifetime earnings distribution

Decile of
lifetime
earnings
distributio
n_________

a
NPV repayments,
£

b
Subsidy as
% of loan

c
Years to
repay loan

All

Females

Males

All

Females

Males

All

Females

Males

Poorest

£9,077

£13,43

50.5%

22.7

23.8

18.6

£ 7,435

0

59.5%

26.8%

2∏d

£13,314

£14,64

27.4%

19.4

21.6

15.7

£10,900

0

40.6%

20.2%

3rd

£14,419

£14,92

21.4%

17.2

19.9

14.4

£13,180

5

28.1%

18.6%

4th

£14,792

£15,16

19.3%

15.4

17.9

13.3

£14,225

0

22.4%

17.4%

5th

£14,963

£15,33

18.4%

14.4

16.4

12.5

£14,645

0

20.1%

16.4%

6tth

£15,164

£15,49

17.3%

13.4

15.3

11.7

£14,850

0

19.0%

15.5%

7lh

£15,333

£15,63

16.4%

12.6

14.5

11.1

£14,980

0

18.3%

14.8%

8tth

£15,527

£15,79

15.3%

11.7

13.4

10.4

£15,185

0

17.2%

13.9%

9th

£15,757

£15,88

14.1%

10.6

12.6

9.9

£15,340

0

16.4%

13.4%

Richest

£16,004

£16,10

2.7%

9.4

11.1

9.0

£15,670

5

14.6%

12.2%

All

£14,439

£13,640

£15,23

21.3%

16.9

16.6

12.7

8

25.6%

%

14.7

Figure a. Net present value of graduate repayments under the new HE system

15



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