A new education loans system in the UK will decrease funding for higher level courses, which could see a large drop in students attending college in the country.
This new system could also widen the skills gap, according to analysts.
A consultation document the UK government submitted in June concerns advanced learning loans, which would cut the adult skills budget by 40% by 2015 to decrease pressure against the Treasury with an increase of private funders offering higher-level qualifications.
The proposals of the consultation document highlighted the funding and regulation of higher education qualifications below degree level. The Skills Funding Agency rather than the Higher Education Funding Council for England will fund these qualifications.
Colleges will be severely affected given that it will underdevelop many higher education programmes in existence. Most higher education programmes train people with specific skillsets for specific industries. The programmes will be unlikely to attract funding similar to what it received from the Council.
The consultation also said that maintenance loans for higher-level programmes should be introduced, but it does not make clear if students will still be eligible for maintenance grants.
Analysts said that this new proposal, along with the increases in college tuition fees will make the educational situation in England worse.