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Budget: university students to pay more with removal of caps on fees Budget: university students to pay more with removal of caps on fees
(4 months later)
The Abbott government will The Abbott government will slash public funding for university courses by 20% and expose students to big increases in their debts with the removal of all caps on the fees universities can charge.
slash public funding for university courses by 20% and expose students to big Graduates will also have to pay back their Higher Education Loan Program (Help) debts sooner and the debts will be higher as the government plans to apply higher interest rates.
increases in their debts with the removal of all caps on the fees universities can The sweeping changes to higher education are likely to trigger big protests from university students and leave the government vulnerable to political attacks for driving up the cost of education.
charge. They run counter to Tony Abbott’s pre-election promise to preside over “no cuts to education” and comments by the education minister, Christopher Pyne, that the Coalition had no plans to increase fees.
Graduates will also have to Total higher education funding in 2017-18 is $9.5bn. While this is a nominal increase of $750m compared with 2012-13, analysis by Guardian Australia shows it represents a cut of about $1.5bn in real terms when population growth and inflation are taken into account.
pay back their Higher Education Loan Program (Help) debts sooner and the debts One of the Coalition’s biggest budget measures is a $3.2bn saving over four years by forcing students to repay their Help debts sooner and changing indexation arrangements.
will be higher as the government plans to apply higher interest rates. Graduates now begin to repay their loans when they reach an income equal to average earnings, but this threshold will be reduced to 90% of average earnings in June 2016. Budget papers say this will be an income of $50,638.
The sweeping changes to At the same time the government will begin indexing Help debts at the 10-year bond rate, rather than the consumer price index. The higher interest rate will be capped at 6% a year.
higher education are likely to trigger big protests from university students Budget papers reveal government subsidies provided under the Commonwealth Grant Scheme for new students’ course fees will be reduced by 20% on average “to support the sustainability of higher education funding”. Under present arrangements the commonwealth provides about 60% of course fees.
and leave the government vulnerable to political attacks for driving up the Caps on student contributions that higher education providers are allowed to charge will be removed from January 2016, for students to accept an offer to start a course from now onwards.
cost of education. But students who had already started or deferred a course at the time of this year’s budget will have their contributions capped until 2020.
They run counter to Tony Universities will be required to put at least 20% of any extra fees towards a scholarship scheme “to assist students from disadvantaged backgrounds so they don’t miss out”.
Abbott’s pre-election promise to preside over “no cuts to education” and The savings accompany a pledge to extend Commonwealth Grant Scheme subsidies to higher education courses at the diploma, advanced diploma and associate degree level. This funding will also be available for courses provided by non-university providers, including private colleges.
comments by the education minister, Christopher Pyne, that the Coalition had no Pyne said it was the first time in Australian history that direct commonwealth support would be provided “to all those studying higher education diplomas, advanced diplomas and associate degrees, with all registered higher education institutions, whether in the city or the bush”.
plans to increase fees. He said students would continue to be protected by the Help system and would still be spared from repaying the debt until they were “earning a decent income”.
Total higher education “The Abbott government’s plan will strengthen the higher education system,” Pyne said in a statement accompanying the budget papers.
funding in 2017-18 is $9.5bn. While this is a nominal increase of $750m “Universities will be able to compete to attract students because they will be able to set their own tuition fees for the courses they offer … This reform package will ensure that our higher education system as a whole is better resourced.”
compared with 2012-13, analysis by Guardian Australia shows it represents a cut
of about $1.5bn in real terms when population growth and inflation are taken
into account.
One of the Coalition’s
biggest budget measures is a $3.2bn saving over four years by forcing students
to repay their Help debts sooner and changing indexation arrangements.
Graduates now begin to repay
their loans when they reach an income equal to average earnings, but this
threshold will be reduced to 90% of average earnings in June 2016. Budget
papers say this will be an income of $50,638.
At the same time the
government will begin indexing Help debts at the 10-year bond rate, rather than
the consumer price index. The higher interest rate will be capped at 6% a year.
Budget papers reveal
government subsidies provided under the Commonwealth Grant Scheme for new
students’ course fees will be reduced by 20% on average “to support the
sustainability of higher education funding”. Under present arrangements the
commonwealth provides about 60% of course fees.
Caps on student contributions
that higher education providers are allowed to charge will be removed from
January 2016, for students to accept an offer to start a course from now
onwards.
But students who had already
started or deferred a course at the time of this year’s budget will have their
contributions capped until 2020.
Universities will be required
to put at least 20% of any extra fees towards a scholarship scheme “to assist
students from disadvantaged backgrounds so they don’t miss out”.
The savings accompany a
pledge to extend Commonwealth Grant Scheme subsidies to higher education
courses at the diploma, advanced diploma and associate degree level. This
funding will also be available for courses provided by non-university
providers, including private colleges.
Pyne said it was the first
time in Australian history that direct commonwealth support would be provided
“to all those studying higher education diplomas, advanced diplomas and
associate degrees, with all registered higher education institutions, whether
in the city or the bush”.
He said students would
continue to be protected by the Help system and would still be spared from
repaying the debt until they were “earning a decent income”.
“The Abbott government’s plan
will strengthen the higher education system,” Pyne said in a statement
accompanying the budget papers.
“Universities will be able to
compete to attract students because they will be able to set their own tuition
fees for the courses they offer … This reform package will ensure that our
higher education system as a whole is better resourced.”
– with Luke Mansillo– with Luke Mansillo