Unis question Rudd's HECS plan

KEVIN Rudd's plan to rein in the "out of control" Higher Education Contribution Scheme has been questioned by universities, who say providing more income and living support to students could be a much better option.

KEVIN Rudd's plan to rein in the "out of control" Higher Education Contribution Scheme has been questioned by universities, who say providing more income and living support to students could be a much better option.

They argue that there is little evidence that HECS fees are a major deterrent to students and that the dollars would be better spent topping up Youth Allowance and providing additional scholarships.

The Opposition Leader promised in an interview with The Australian on Monday to reduce the burden of HECS debt by providing a “more reasonable framework”. 

Mr Rudd said he felt the HECS scheme was out of control and prevented children from working-class families going to university.

Apart from cutting HECS for maths and science students, which Mr Rudd had already announced, the Opposition would not give any further details on how it would relieve the HECS burden until closer to the election.

Universities Australia incoming chairman Richard Larkins said bumping up income support for students would be the most effective way of increasing access to university for working-class students.

“It would be great if HECS was reduced, but if there is only a limited amount of funding available, it would be more effective to provide more income for poorer students at university,” he said.

“In terms of the equity outcomes and the number of dollars spent, it would probably be better going into student support while studying at university.”

Professor Larkins, who is also the vice-chancellor at Monash University, pointed out that HECS was a deferred loan scheme so it didn't have a direct impact on students while they were studying.
Professor Larkins said there was “no strong evidence” that HECS was a financial disincentive for students.

He also said that any reduction in HECS funding should not mean a decrease in government funding to universities.

“It would be great if we could reduce the HECS burden but not at the expense of universities,” he said.

Group of Eight universities chairman Alan Robson said the bigger problem for students was trying to support themselves while at university.

Professor Robson said the age of independence to qualify for Youth Allowance should be decreased from 25 to 18.

He said research showed students were increasingly struggling to support themselves through university.

“The number of students taking out loans to cover living expenses have doubled since 2000,” Professor Robson said.

A student survey conducted by Universities Australia found 70 per cent of full-time undergraduates students work.

The survey found one in eight students regularly go without food because they cannot afford it, and 40 per cent of students said working affected their studies.