Loan Scheme `mixed Bag'

Illawarra Mercury

Wednesday September 5, 2001

A NEW postgraduate loans scheme could force students into a vicious cycle of debt according to Wollongong University Postgraduate Association president Dave Coffman.

Mr Coffman said while the Federal Government's Postgraduate Education Loans Scheme, which came into effect last week, would improve access to tertiary education, it could come at a cost.

The new scheme offers Australians the opportunity to undertake postgraduate coursework study through an interest-free, income-contingent loans facility. The initiative is expected to create an additional 30,000 student places.

``It's really a mixed bag. On the one hand it provides a way for students to attend university when they otherwise wouldn't have been able to due to hefty upfront fees," he said.

``However, what the Howard Government has succeeded in doing is dumping on the backs of postgraduate students who now have to pay a substantial amount towards the cost of their education.

``I think students should contribute some of the cost but at the same time society has certain needs, and wants people to do certain things, so the Government needs to look at funding education as an investment."

The US student, who is undertaking a PhD in law at the University of Wollongong, said he feared Australia was ``being pushed towards the US-type loan scheme. In the last 20 years, US universities have been getting less and less funding from the state, with the burden shifting more and more onto the student," he said.

``Australia is moving towards that situation and the problem is Australia generally doesn't have the large salaries offered in the US, which enables those students to pay off their debts more easily.

``I am concerned about the problems Australian students will face later in life when faced with repaying large debts."

Federal Education, Training and Youth Affairs Minister Dr David Kemp said the scheme, part of the Government's $2.9billion Innovation Action Plan ``Backing Australia's Ability", had been welcomed by universities.

He estimated that 240,000 people would take up a loan to undertake postgraduate coursework study over the next five years.

``Many Australians are keen to improve their employment prospects and increase their income-earning potential and this scheme will assist them to do this," Dr Kemp said.

© 2001 Illawarra Mercury

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