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Martin Freedman, head of pay, pensions and conditions at the Association of Teachers and Lecturers (ATL), said:
"Policy Exchange has taken attempts to turn higher education into an up-market employment bureau a step further.
"Of course, we need an intelligent debate about the future funding of HE, especially given the current constraints on public finances.
"But their proposals to make HE a pure market system, with students paying to be turned into employable adults and higher charges for wealthier is not that debate.
"Undeterred by the debacles over education maintenance allowances and student loans, Policy Exchange proposes a private loan scheme that is likely to put students into debt."
The Association of Teachers and Lecturers (ATL) is an independent, registered trade union and professional association, representing approximately 160,000 teachers, headteachers, lecturers and support staff in maintained and independent nurseries, schools, sixth form, tertiary and further education colleges in the United Kingdom.
ATL exists to help members, as their careers develop, through first rate research, advice, information and legal advice.
ATL is affiliated to the Trades Union Congress (TUC), Irish Congress of Trade Unions (ICTU), European Trade Union Committee for Education (ETUCE) and Education International (EI). ATL is not affiliated to any political party and seeks to work constructively with all the main political parties.