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@Dammit
If it costs a UK student the same amount to do a degree here, or a degree overseas (and they speak the language) I would think that there would be a strong temptation to opt for the overseas University.
Also, might this make people look at a degree as more of an investment- i.e. if the choice is between Media Studies or Computer Science and the Comp Sci course is £2,400 per year versus £9,000 for Media then we might create more computer scientists?