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Indebted Scholars
Sydney Morning Herald
Saturday April 23, 2005
Is a tidal wave of student debt about to overwhelm both graduates who pay full tertiary fees and the federal budget? That is the contention of Labor's education spokeswoman, Jenny Macklin, who cites the Government's figures for a new scheme which offers loans of up to $50,000 to such students. By 2007, total debt under the scheme is estimated to reach $1.5 billion.
It sounds like quite a blow-out - but remember, the figure is debt owed to the government. The conditions for repayment are the same as for the Higher Education Contribution Scheme, so while some students will not repay in full, many will. The eventual cost is not likely to be anywhere near $1.5 billion.The Federal Government has welcomed the figures, saying they show the Fee-Help scheme is on track and is widening the choice of courses for students who would otherwise struggle to pay for tertiary study. One reason the debt will rise quickly is that Fee-Help has been opened up to cover 31 new private tertiary colleges, where it has been enthusiastically adopted.Labor would like to entirely abolish full-fee places, which it fears will undermine public university education. The essential argument is over equity: with a score just below the cut-off point for a HECS place, a poor student will miss out through lack of resources, but a rich student with an even lower score will be able to buy his or her way to a degree. Is that fair? No, it is not. Is it unfair enough to generate widespread resentment, and create political will for change, including quite possibly higher taxes to pay for it? No, it is not that, either. Students under HECS finish their degrees with an average debt of $9000 - not an unreasonable burden, given the value of a degree. While HECS places are availablein sufficient numbers for the most talented students to gain qualifications for a modest cost, there is merit in making available extra, paid places for the less ablewho can afford to pay for a degree, and loan schemesto help them do so.
© 2005 Sydney Morning Herald