Rising cost of higher education in Australia

An article from The Age highlights the recent OECD report, which states that Australia has the fourth most expensive degrees in the developed world after the US, Japan and Korea.

There was hope on the horizon some months ago with opposition leader Kevin Rudd's pledge to do "something" about the massive debt shouldered by students; but policy details are lacking and it appears the issue is on the political backburner.

Increasing costs and reduced government funding do not yet appear to have deterred students, and the proportion of university students from disadvantaged socio-economic backgrounds remains steady - but there is argument that the actual effects will take some time to make themselves known.

"University participation direct from school is dropping, particularly among country students, who say they are deferring because of the cost." (Adam Morton, The Age)

Govt schemes in last 30+ years
1974 Gough Whitlam abolishes university tuition fees, arguing higher education is a public good that should be free for all.

1989 John Dawkins, education minister in the Hawke government, introduces the Higher Education Contribution Scheme — a deferred loan system with fees drawn from wages once income passes $22,000. Original flat-fee rate of $1800 a year. The most expensive degree, medicine, costs $10,800.

1997 Howard Government introduces differential HECS. Students pay between $3300 and $5500, depending on their degree. Income threshold lifted from $25,000 to $35,000. Medicine costs $33,000.

1998 Introduction of full-fee places for Australian students.

2005 HECS rates lifted by 25 per cent. Maximum rate of $8018 a year. Medicine costs about $50,000.

2007 Cap lifted on how many full-fee places universities can offer. Full-fee degrees cost up to $250,000.

There are presently three types of university debt HELP schemes:

1. HECS-HELP for eligible Commonwealth supported students;
2. FEE-HELP for eligible full-fee paying students; and
3. OS-HELP for eligible Commonwealth supported students who want to study overseas.

More info www.goingtouni.gov.au.