Though they might be somewhat divided on the controversial issue of fee deregulation, every University in Australia is standing united with the unanimous view that the Federal Government‘s plan to increase the interest rates on HECS debts is a fundamentally bad idea. The government’s plans to reform Higher Education, as outlaid in last months Budget, have unsurprisingly drawn heated opposition from student bodies. But in what ordinarily would have been unanimous backing of the plans, such is the hodge podge nature of the various proposed reforms, that the Government is now facing resistance from Universities themselves.
It seems to come as little shock that, particularly the schools perceived to be of greater prestige, that most view fee deregulation as a necessary ill to ensure the research survival of Universities, and to preserve the quality of Australian tertiary education. However in a poll conducted by Fairfax, every University Vice-Chancellor – all 39 of them – has stated that the Government’s plan to apply an interest rate of up to 6 percent on student debt, along with cutting Commonwealth contributions to the cost of a degree by 20 percent is, essentially, a terrible idea.
Deakin University‘s vice chancellor Jane den Hollander called the proposal “punitive and unfair,” whilst the University of Canberra‘s vice-chancellor Stephen Parker was scathing in his assessment, calling the proposed changes “unfair, unethical, reckless, poor economic policy.” Yikes.
The overwhelming response from the Universities seems to be in line with the students: that HECS debts should only increase in line with inflation, and should not have any additional interest applied to it. Though Education Minister, noted weasel-resembler, and master of sneaking Christopher Pyne has asserted that students should pay their debts at the same rate it costs taxpayers to borrow the money. A fine statement from a man whose degree didn’t cost him a single cent.
The government is working feverishly, toying with the idea of giving ground on certain aspects of the budget as it faces a remarkably hostile Senate. Meanwhile, the Universities have been offering their own solutions to the problem. Victoria University, for example, suggested capping student debts, indexing HECS to inflation till students graduate, and offering greater government subsidies to low-income students. In response, the cooler Universities patted VU on the head, told them it was a really good job, and offered to put their suggestions on the fridge.
The issue continues to simmer.
Photo: Christopher Furlong via Getty Images.
via SMH.
