Changes to Higher Education costs in the Budget are genuinely scary. Alex starting his degree next year hopefully in engineering at Monash will be charged from second year up by more than 30% per annum (currently $35000). His degree is likely to go up to $100,000 to complete within a few short years. Universities can charge up to what they charge international students, essentially uncapped for the more prestigious universities and will lead to our students competing with wealthy foreign students for places. Furthermore, the interest charged will start from the year the HECS starts (in the UK interest starts when you start paying back) the interest rate will now be attached to the 10 year bond rate (currently over 3%) capped at 6% and not the inflation rate as it is now which is a tad over 2%. That interest is compounding every year adding to the debt burden of the student. These changes could potentially lead to harsher effects on women if they havent paid back all of the debt before they have children as they often go part time. Universities and government have admitted they dont know how high students debts will go and they dont know the effect on student behaviour, whether they will be averse to going to university and what levels of poverty they will sustain during their course in order to try and keep their debts down. Interesting the government says we must all pay to lower government debt but have no problems with burdening 22 year olds with $100,000 of debt. These moves are completely at odds with the rhetoric for a smarter country and a transforming economy. If you want to hear a very interesting interview look at the interview with the President of the Group of 8 top universities Prof Ian Young with Tony jones on Lateline last night.
Posted on: Thu, 15 May 2014 22:57:18 +0000
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