A friend of mine, who is an Assistant Director of Education for a local authority, once commented, "We have too many universities and not enough higher education." That captures the essence of the current state of play.
It is dysfunctional to have a mass participation HE system grafted onto an institutional structure created to cater for an academic elite. Many young people go to university in the mistaken belief that a degree is a passport to higher earnings and upward social mobility. As the same friend put it, "They're dammed if they do, and dammed if they don't."
What is needed, medium term, is the wholesale rationalisation of higher education to meet the needs of the 21st century student. This means fully embracing the concept of lifelong learning, defined in one source as," the ongoing, voluntary, and self-motivated pursuit of knowledge for either personal or professional reasons. It is important for an individual's competitiveness and employability, but also enhances social inclusion, active citizenship, and personal development."
As well as the current proposal for a lifelong learning loan of £37,000 there needs to be a move away from the traditional 3 year degree towards high quality modular awards that enable students to move more easily between education and employment. This would imply that some universities would need to close certain courses and merge with other institutions. My own view is that at least a part of the £37,000 fund should be a grant, payable when a student has demonstrated commitment to study at post-secondary school level.
All this does not imply the end of the university experience that so many of us cherish. When you're 18 you often can't wait to get away from mum and dad and explore life in a different part of the country. But is three years of study on the trot the best way for everyone? Many would love to intersperse periods of study and employment - knowing that the entitlement to funding was securely in place.