$54m for education providers hit by the pandemic

Independent higher education providers and English language colleges suffering loss of international students will get a $54m assistance package.

Federal Education Minister Alan Tudge.

The Morrison government will help out independent higher education colleges and English language colleges and which have been hit by the loss of international students with a $54m assistance package.

Education Minister Alan Tudge said on Friday that many non-university education providers “have seen revenue decline very sharply and without some support, they may close or lose serious capacity”.

“The package is measured and targeted at those who need it most while borders are closed,” he said.

Non-university higher education providers — that is private and independent colleges which teach university level courses — are the biggest winners in the government announcement, gaining $26.1m to offer 5,000 more short courses to domestic students.

Until the end of this year the government will also exempt students from paying loan fees on FEE-HELP loans and pause a planned increase in regulatory fees and charges for non-university higher education providers and English colleges. Together both measures will cost $17.1m.

Mr Tudge also said $9.4m would be put into an innovation fund that would offer grants of up to $150,000 to boost the delivery of courses online.

Mr Tudge said that non-university education providers had lost proportionately more international students due to the pandemic than universities had.

The government’s data shows that, in the first two months of this year, international students enrolments are down 12 per cent at universities, compared to a 17 per cent decline at non-university higher education providers, and a massive 67 per cent decline for English language colleges.

“Many non-university providers have seen revenue decline very sharply and without some support, they may close or lose serious capacity. The package is measured and targeted at those who need it most while borders are closed,” Mr Tudge said.

Two bodies representing independent higher education colleges welcomed the government announcement.

Independent Tertiary Education Council Australia said the support came at a critical time.

“The extension of TEQSA and ASQA regulatory fee relief for a further six months will help provide the cash flow critical to supporting jobs with independent higher education and vocational training providers,” said ITECA chief executive Troy Williams.

Independent Higher Education Australia welcomed the longer exemption period for loan fees paid by students taking out FEE-HELP loans.

“The FEE-HELP loan fee operates as an unfair tax on students as it applies only to non-university students resulting in student debts of 120 per cent of course fees,” said IHEA chief executive Simon Finn.

The National Tertiary Education Union welcomed the government assistance, but noted it only help private and independent education providers.

“But the downturn in international student income has contributed to the over 17,000 jobs lost at universities over the last 12 months, many of which could have been saved if the government had allowed universities to access JobKeeper or provided a real rescue package,” said NTEU national president Alison Barnes.