Following last week’s announcement by Education Minister Simon
Birmingham, please find an overview of the Government's proposed higher
education funding reforms, and how it may affect students who are considering
applying for ACU and other Australian universities in 2018.
The Federal Government’s higher education reform package retains the existing framework of the higher education funding system. This includes the commitment that no Australian student will pay a cent upfront for their bachelor degree studies.
The reform package aims to balance the funding of university education, by reducing government funding and increasing the contribution from universities and students. Please note that the proposed reform package will not be implemented until Parliament has debated and passed the relevant legislation.
Increased fees
From 1
January 2018, students would pay a greater share of the cost of their studies.
Student fees would rise over time, at the rate of 1.8 per cent each year up to
2021. In total, this is a 7.5 per cent increase in student fees.The Federal Government’s higher education reform package retains the existing framework of the higher education funding system. This includes the commitment that no Australian student will pay a cent upfront for their bachelor degree studies.
The reform package aims to balance the funding of university education, by reducing government funding and increasing the contribution from universities and students. Please note that the proposed reform package will not be implemented until Parliament has debated and passed the relevant legislation.
Increased fees
The
government has estimated that the following increases would apply based on
current course fee levels:
For a Bachelor of Education student
enrolling in 2018, this will add $1,250 to the cost of the degree over four
years.- For a Bachelor of Nursing student enrolling in 2018, this will add $1,250 to the cost of the degree over three years.
- For a Bachelor of Arts student enrolling in 2018, this will add $700 to the cost of the degree over three years.
A summary of other changes includes:
· The total
extra cost of a four-year degree at an increase of 7.5 per cent would be
between $2,000 and $3,600.
· The average
student contribution would increase from 42 per cent to 46 per cent of the
total cost of a degree (the government contribution would fall from 58 per cent
to 54 per cent).
· Non-citizens
who are permanent residents (or New Zealanders) would no
longer be eligible for Commonwealth Supported Places (CSPs) and, instead, would
become full fee-paying students.
o These
students previously had to pay the student contribution upfront, they will now
be eligible for a HELP loan (FEE-HELP) for the higher contribution.
o New
Zealanders who arrived as minors and have lived in Australia for over 10 years
will still be eligible for a CSP and a HELP loan for their studies.
Higher Education Loan Program (HELP)
Fees for all places funded by the government may still be deferred through the Higher Education Loan Program (HELP).
The government proposes to increase the pool of graduates making repayments on their HELP loans.
· From 1 July
2018, HELP repayments would be made once a graduate earns $42,000.
· Graduates
would repay one per cent of their income through the taxation system – equating
to $8 per week. This would rise incrementally depending on income.
· The
repayment rate would rise as incomes rise: graduates on a salary of
$44,520-$56,205 would pay 1.5-3.5 per cent of their income (up to $37 per
week).
· At the other
end of the spectrum, graduates earning $100,655 or more would pay a higher rate
(8.5-10 per cent) of their income towards their HELP loan.
· There would
be no fees on student loans.
The demand-driven funding system would be expanded to include Commonwealth Supported Places (CSPs) in approved sub-bachelor level diploma, advanced diploma and associate degree courses at public universities from 1 January 2018. ACU offers a range of sub-bachelor courses. For example, a student who does not yet meet the entry requirements for a bachelor course, could enrol in a Diploma in Educational Studies (Tertiary Preparation) which is a direct pathway into all Initial Teacher Education courses.
This means that publicly-funded university-based learning will be extended to a much broader range of Australians.
If you have any further questions about the proposed reforms, please get in touch with your local Student Recruitment representative. You can contact them here.
