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‘It’s counter-intuitive’: Students hit with higher fees if they tweak degrees
University students seeking to tweak their degree path or drop one of their courses are being stung with higher fees, despite the federal government’s assurance that no existing students would be worse off under its new scheme.
The university funding changes, which came into effect this year, mean students will pay more than double for humanities courses, and 28 per cent more for law and commerce degrees, while the cost of science, maths, nursing and teaching degrees have been slashed.
Matt Gerrard has been caught out by the fine print. Credit: James Brickwood
The changes were grandfathered, so that existing students would receive discounts if their courses became cheaper but pay the same for courses that became more expensive. When the then federal Education Minister Dan Tehan first announced the changes in June 2020, he said “no current student will be worse off. No current student will pay an increased student contribution”.
However, fine print in the legislation defines a grandfathered student as someone enrolled in an “ongoing course” before January 1, 2021.
Any student who drops from a double degree to a single degree will have to pay the new fees to finish that degree, including if it has become more expensive. Students who change one degree in their double degree will also have to pay the new cost for the remainder of both degrees.
That revelation has sparked concern among students who were not aware they could be financially penalised for changes to their existing courses.
University of NSW student Matt Gerrard wanted to transfer from his law/music degree to a law/science degree this year but is rethinking the move after learning it could cost him an extra $6000 by the time he graduates, because he will be charged the new higher cost for his law course.
“For students doing double degrees, especially law degrees where the second degree is compulsory, changing your secondary degree is very common, especially at the end of first year,” Mr Gerrard said.
“For students like myself – changing their second degree from an arts to science based faculty – it’s counter-intuitive, since this bill was encouraging students to move towards STEM.”
Under the fee changes, an arts/law student who drops their law degree but continues studying arts full time will pay as much as $5400 more each year for that same course.
A student who switches from arts/law to science/law will now pay 28 per cent more for the remaining parts of their law degree, but will benefit from the lower fees for science courses.
Overall, that student could pay as much as $2000 more each year for the new double degree, or a 22 per cent increase, based on course mix of half law and half science each semester.
A Department of Education spokeswoman confirmed that, in these examples, the students would be considered to have changed course and “would pay the new rates under the new system”.
“All students, whether grandfathered or not, will pay the new, lower rates for units in applicable fields under the new system,” the spokeswoman said.
Mr Gerrard has written to federal Education Minister Alan Tudge, arguing for an amendment to stop existing students like him being negatively impacted by the changes.
“The fee hike does not align with the intention of the bill, which is aimed at encouraging new university entrants to consider ‘national priority’ degrees,” he wrote.
Mr Tudge said students could change into degrees that had become cheaper if they wanted to reduce the overall cost of their studies. “[That] will better skill them for jobs that are in demand,” he said.
“Someone studying science/law is going to finish their degree with great earning potential and won’t have to pay a cent for their degree until they reach the income threshold.”
A UNSW spokeswoman said the university had written to all impacted students who had sought an internal program transfer this year, after it became aware students did not know they could be financially penalised.
“[We gave them the] opportunity to reverse their program transfer if they were financially disadvantaged by the change in program,” she said.
“University fee changes were effective from January 1, 2021, and apply to commencing students as well as students who transfer into a different program. This includes students who transfer from a single degree to a double degree, or from a double degree to a single degree.”