PARTIALLY ACCEPT As higher education providers are independent from Government, it is their responsibility to manage their finances. This includes decisions around borrowing. The latest Office for Students financial health report—published in May 2026—shows that in 2025-26, providers forecast that overall gearing levels will slightly decrease to 27.8 per cent of income (from 28 per cent in 2024/25). This downward trend is expected to continue, reaching 24.1 per cent by 2028-29. Although gearing levels are expected to decrease, we recognise the concerns raised by some providers about access to borrowing and lending conditions, as highlighted in the report. The Government continues to engage with providers, the Office for Students and lenders regarding financial trends, risks and issues in the higher education sector. This includes keeping under review the feasibility and potential implications of any role for the Office for Students in agreeing high levels of borrowing. Changing the current tuition fee payment schedule (which has been in place since the 2012/13 academic year) from the current split of 25/25/50 would increase students’ loan balances, as interest would accrue on larger amounts earlier in the academic year. It would also increase overall Government outlay and Public Sector Net Debt.