{"id":26032,"date":"2018-11-16T13:01:43","date_gmt":"2018-11-16T13:01:43","guid":{"rendered":"http:\/\/thevoiceoflondon.co.uk\/?p=26032"},"modified":"2018-11-16T13:01:43","modified_gmt":"2018-11-16T13:01:43","slug":"university-receives-1-million-bailout-from-higher-education-watchdog","status":"publish","type":"post","link":"https:\/\/blog.westminster.ac.uk\/thevoiceoflondon\/university-receives-1-million-bailout-from-higher-education-watchdog\/","title":{"rendered":"University receives \u00a31 million emergency loan"},"content":{"rendered":"
\"\"

source: Unsplash<\/p><\/div>\n

The higher education watchdog Office for Student (OFS), has given an emergency loan of \u00a3900,000 to a university this summer to help it get through a financial crisis.<\/span><\/strong><\/p>\n

The anonymous university was running out of money and couldn\u2019t pay its bills. The regulator says the university, a small-scale, modern institution has repaid the money, and now has a stable grasp on its finances.<\/span><\/p>\n

This calls attention to the fragility of university finances, and how they are now in a \u201cmarketplace\u201d according to the BBC<\/a>. Universities are vulnerable to the ups and downs of recruitment with possibilities of a decrease of increased tuition fee income.<\/span><\/p>\n

This affair puts OFS in an embarrassing situation. They gave a strong statement saying that there would be no bailouts for universities as the chairman of the regulator, Sir Michael Barber, told a conference that it was wrong for universities to think those who had financial problems due to insufficient student numbers or overspending on constructions would get financial help. <\/span><\/p>\n

The watchdog declares the bailout was given out under the rules, tradition arrangements of its predecessor organisation, the Higher Education Funding Council for England.<\/span><\/p>\n

Now a spokesman from the OFS said they are under new rules now, and the financial support would no longer be in place.<\/span><\/p>\n

It raised the question of whether universities should be allowed to collapse from financial dilemmas.<\/span><\/p>\n

It will put the watchdog and Department for Education into a tricky position if they let major universities go bust. Many have questioned how they allowed students to apply to go to universities the OFC knew had financial warnings.<\/span><\/p>\n

Since the majority of students are going to take debt from a degree, the OFS, considering the consumer interest, would be expected not to let students go to a university that has a financial problem.<\/span><\/p>\n

But if the ministers from the Department for Education or OFS warn people a university is in financial difficulties, that will put it even more in danger regarding student numbers as a significant part of a university\u2019s income are newcomers.<\/span><\/p>\n

Nevertheless, the OFS claims its new provisions will make the higher education sector financially stronger, as they will make sure the universities who register with them are secure in finance.<\/span><\/p>\n

Related Stories<\/p>\n

Universities in the UK face decline in student numbers<\/a><\/p><\/blockquote>\n