The ancient university that has been seated at Oxford at least since Norman times has little in common with the modern one at Loughborough in the English Midlands that is descended from a council-run technical college. Yet one thing that is the same in both places is the £9,000-a-year fee. Britain’s universities are barred from charging more than that, and only a quarter of them opt to charge less.
Andrew Hamilton, Oxford’s vice-chancellor, detects that something is amiss. Noting the oddity of “a market in which every item, virtually regardless of content and quality, is the same price”, he argues that universities should have the freedom to charge more.
Yet America’s experience of allowing universities to set their fees is a cautionary tale. In real terms, tuition at US universities costs on average five times more than it did 30 years ago. Annual fees can run to $45,000 (roughly £28,000). Two-thirds of students who graduated in 2011 had gone into debt, borrowing an average of $26,000.