Budget to ‘lift fees for university students, scrap funding cuts’

STUDENTS will reportedly be hit with higher fees and cuts to university funding will be scrapped in a contentious revamp.

Federal Minister for Education Simon Birmingham. Picture: AAP.

STUDENTS will be charged higher fees and cuts to university funding will be scrapped in a revamp of the higher education package, to be included in the budget.

The Weekend Australian reports that the broad outline of the new funding formula, which could see student fees rising by a minimum of 25 per cent, is to be unveiled to vice-chancellors who have been summoned to Canberra on Monday for a briefing.

The new plan will increase the share of university costs to be borne by students from the current 40 per cent, while requiring students to start repaying their higher education loans earlier by lowering the salary threshold for repayments to commence.

Prime Minister Malcolm Turnbull and Minister for Education Simon Birmingham. Picture: AAP.

Students will also be charged a loan fee at the start of their studies.

The government will justify the changes by highlighting that tertiary education delivers graduates a significant private benefit in the form of higher incomes, reports The Weekend Australian .

The Grattan Institute’s Andrew Norton, who was on a ministerial working party advising Senator Birmingham on implementation of his reforms, said: “Students haven’t really taken any cuts in recent years. Most students have not contributed anything to budget repair.”

Read more at The Weekend Australian.