Loans Keep Private Education Growing

The Age

Monday April 3, 2006

DAVID ROOD, EDUCATION EDITOR

PRIVATE higher education institutions received almost $60 million last year from the Federal Government for local fee-paying students, fuelling rapid growth of the private education sector.

Federal Education Department figures show that private institutions can expect $79.1 million this year, an increase of a third.

The data, from a Senate estimates hearing, showed the Government gave universities and private providers more than $343 million in advances for fee-paying students.

Last year, fee-paying undergraduates were able to access a deferred government loan for the first time.

The loan, FEE-HELP, is capped at $50,000 and, like HECS, is repaid when the student reaches a set income level. Advance payments to institutions are later reconciled against enrolments.

The number of students enrolled in private education has jumped from 20,000 in 1999 to more than 50,000 last year.

Last year, 33 private institutions received FEE-HELP funding, according to the Education Department. This year 38 will.

The Australian Council for Private Education and Training said FEE-HELP was the key to private sector growth. National executive officer Tim Smith said providers were predicting 50 per cent growth in student numbers this year. The biggest growth was in partnership agreements where private education institutions run courses for universities.

Opposition education spokeswoman Jenny Macklin said the Government was putting university education beyond the reach of many Australian families.

"Through FEE-HELP Australian students can rack up debts of $50,000, a sum many students will struggle to repay," she said.

A spokesman for federal Education Minister Julie Bishop said students were exercising their choice.

© 2006 The Age

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