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What changes have been made to uni fees?In January 2005, the Australian government changed university fee structures. The main things that happened were:
- fees increased for all degrees except teaching and nursing
- the loan scheme structured into three new schemes
- universities got more control over setting their fees
- full fee-paying places increased from 25% to 50% per course (Commonwealth supported places must be filled first).
How much does a degree cost?The most expensive part of studying is the tuition fees. University tuition fees and the methods for paying them differ according to the type of place you have at university. There are two types.
Commonwealth supported place The Australian Government contributes some of the cost while you pay the ‘student contribution’. The student contribution is set by the university up to a maximum limit; in 2005 this ranged from $3847 to $8018 per year. The amount differs by course—for example nursing and teaching are national priorities so they have the lowest fees.
Full fee-paying place These places are not subsidised by the Commonwealth Government. There is no upper fee limit but universities cannot charge less than the amount for the Commonwealth supported place.
How do you pay for a uni degree?All Australian uni students take out a government loan for their tuition fees. You then choose to:
- pay the loan at the beginning of the study year before the census date
- defer payment until your income is above the minimum threshold level
- make some voluntary payments and defer the rest.
What are the loan conditions?The conditions of the loan scheme depend on what type of place you have.
Commonwealth supported place The loan scheme is called HECS-HELP. There is no interest but the fees go up each year according to inflation. You get a 20% discount on fees if you pay them before the census date and a 10% bonus amount on any voluntary contribution over $500 after the census date. The loan amount is limited to the equivalent of seven years full-time study.
Full fee-paying placeThe loan scheme is called FEE-HELP. There is a loan fee of 20%. You get 10% bonus amount on any voluntary contribution over $500. The limit is $50,000 in your lifetime.
What other types of financial support are available?
- Scholarships (government and non-government)
- Overseas study loans (OS-HELP). Limit is $5,000. There is a 10% bonus amount on any voluntary contribution over $500. The loan fee is 20%, only one loan can be taken out in a 6 month period. There is a limit of two OS-HELP loans in lifetime
- Commonwealth learning scholarships
Is it easier to get accepted into full fee-paying places?Yes. Entry cut-off scores reflect supply and demand—not the academic level required to do a course. Because there is less demand for full fee-paying places (since these places cost more and incur a 20% loan fee) the entry score is lower.
Will you still be able to afford to study?There is no doubt that university education in Australia is becoming increasingly expensive. You will have a large debt at the completion of your studies irrespective of what type of uni place you have—the debt will simply be higher for full fee-paying students.
Full-fee places, having lower entry scores, will provide more people with the opportunity to attend uni. But at the same time, a lot of universities are charging over $100,000 for a degree and the FEE-HELP loan limit is $50,000. So these places may be out of reach for a number of Australians.
How do I know this?Department of Education, Science and Training 2003,
Distribution of New Higher Education Places http://www.dest.gov.au/NR/rdonlyres/527EA1D8-F12F-... Going to Uni, Department of Education, Science and Training,
http://www.goingtouni.gov.au Macklin, J 2005, ‘$100,000 degrees boom under Howard’,
Media release, 3 August,
http://www.jennymacklin.com.au/infocentre.asp?data... Macklin, J 2005, ‘High fees force Australian students to juggle work and study’,
Media release, 28 July,
http://www.jennymacklin.com.au/infocentre.asp?data... Macklin, J 2005, ‘Declining wages and higher fees a turn off for graduate’,
Media release, 27 July,
http://www.jennymacklin.com.au/infocentre.asp?data... Macklin, J 2005, ‘20,000 miss out on uni—Howard's policy of wasting talent’,
Media release, 10 June,
http://www.jennymacklin.com.au/infocentre.asp?data... Nelson, B 2004, ‘Labor’s fee-payers policy shuts out thousands’,
Media release, 26 March,
http://www.dest.gov.au/Ministers/Media/Nelson/2004...
