The second cost, incurred in respect of both EU and non-EU
students, is, quite simply, the cost that the university incurs in providing
for the student. We do not yet have good information about teaching
costs (though information is improving with the introduction of TRAC).
For the purpose of these calculations it is assumed that the home and EU
undergraduate fee plus the HEFCE grant equates to the cost of provision
(HEFCE does not differentiate between undergraduate and postgraduate
students, and funds them as if the costs are similar). The total average
resource (fee plus Funding Council grant) per student in 2004-05 was
about £5,000