STUDENTS OF Britain’s most prestigious Universities look set to feel the pinch as they may be expected to pay higher tuition fees than students of other universities.

A report conducted by London School of Economics claims the rises would be justified as graduates from top universities are likely to earn significantly more than those from less successful institutions.

STUDENTS OF Britain’s most prestigious Universities look set to feel the pinch as they may be expected to pay higher tuition fees than students of other universities.

A report conducted by London School of Economics claims the rises would be justified as graduates from top universities are likely to earn significantly more than those from less successful institutions.

The study comes as the number of the UK universities recognized in the top 200 of the 2008 Times Higher Education-QS World University Rankings fell from 32 to 29.

This has fuelled claims that universities will lose their world-class position unless ministers are prepared to support increases in funding levels.

The LSE study analyzed the salaries of students graduating from university from 1985 to 1999.

It was found that graduates from high-achieving universities could earn up to 6 per cent more than other graduates while students from Russell Group institutions could expect to earn up to 16 per cent more.

The average graduate salary in 1999 was £22,828 and according to the findings, over a twenty-five period, a student could earn up to £35,207 in graduating from a leading institution.

“There is a significant premium to attending a high-quality university over an average university in terms of the wages that graduates can command in the labour market.”

The report also claimed: “There is some justice in requiring graduates to contribute to the cost of their university education, and in allowing different universities to charge different fees.”

This study promotes the end to what Chris Patten, the Oxford chancellor, claims is the “intolerably low” £3,145-a-year cap on tuition fees, as the Government is said to be reviewing all fees next year.

The director general of the Russell Group, Wendy Piatt, described Britain as being in ‘real danger’ of losing its position against other competitors such as China and Germany.

The additional cost would be used to fund necessary increases in staff salaries, which comprise over three-fifths of University budgets.

Without this funding, universities would have to make cutbacks.

The Economist reported that the University of Edinburgh is currently looking to ‘shed 35 of its 500 staff.

Higher wages would satisfy the University and College Union, who agreed to a 3.2 per cent offer earlier this week and students would be expected to foot the bill for these rising costs.

Although the potential benefits exist for students in the long run, pay rises could evoke serious costs for students in the near future.