University degrees to cost more, students forced to pay debts back sooner under Federal funding review
UNIVERSITY degrees will cost thousands of dollars more and students will be forced to pay back their debts sooner as the Federal Government claws back cash in the Budget.
UNIVERSITY degrees will cost thousands of dollars more and students will be forced to pay back their debts sooner as the Federal Government claws back cash in the Budget.
Education Minister Simon Birmingham has detailed to university chiefs a funding overhaul that will save the Government $2.8 billion over the next four years.
But he was emphatic that plans by the Abbott Government to deregulate fees had been scrapped, along with the threat of a 20 per cent funding cut to universities.
“We start from a clean slate with a guarantee that no student will pay a cent upfront for their higher education, students will no longer face fee deregulation and universities will not face a 20 per cent cut to their funding,” he said.
But universities would still face a cut through introduction of a 2.5 per cent efficiency dividend for two years, which would cost South Australia’s three public universities a total of $28.6 million a year.
While Senator Birmingham quelled fears that students could face $100,000 degrees — a much-loved Labor attack line — he said students would face increases of up to $3800 for a four-year course.
“We will also require students to share marginally more of the cost of their education than they presently do,” he said.
“We cannot afford to be complacent and risk jeopardising opportunities for future generations of students who also will want to be able to access student loans that remove all upfront fees from higher education.”
Medicine would be the most expensive course, costing $75,000 for a six-year degree. Other measures include:
FORCING students to start paying back their loans when their annual income reaches $42,000 at a rate of 1 per cent, or $8 a week. Currently, students are not required to start paying back loans until their annual income reaches $55,874 when they would have 4 per cent taken out of their pay.
INCREASING the maximum repayment to 10 per cent for people earning $119,882 or more from a cap of 8 per cent for people earning above $101,000.
TYING 7.5 per cent of universities’ student funding to meeting performance measures such as student retention, completion, satisfaction and job outcomes.
COMMITTING $15 million over four years to establish of up to eight community-owned, regional study hubs across mainland Australia.
GIVING universities a loading of $985 for every disadvantaged student it enrols.
Taxpayer-funded student loans stand at more than $52 billion, a quarter of which was expected to go unpaid under the current system. Australian Tax Office analysis estimated an extra 183,000 people would have to start paying back their debt.