MEDIA RELEASE
LABOR RULES OUT SUPPORTING HIGHER EDUCATION LOANS
FOR POORER STUDENTS
18 June, 2003 MIN 379/03
One month after the release of the Government’s
Higher Education reform package, the Labor Party has announced that
it will not support a loans scheme specifically designed to assist
students from lower socio-economic backgrounds.
For the last month the Labor Party has appeared to
argue that the $50,000 cap on each loan was too low.
"Even if a student takes out your $50,000 loan at
6% interest she still needs to find another $63,000 to pay for her
veterinary science degree."
Jenny Macklin, House of Representatives, 14 May, 2003
Labor now says it will seek to have the loan scheme
removed from the package altogether.
"We do not want an increase in the loans
scheme...there shouldn’t be a loans scheme."
Jenny Macklin, Main Committee, Parliament House, 18 June, 2003
The Higher Education Reform Package provides the
opportunity for universities to increase – if they choose to - the
number of full-fee paying Australian students they accept. These are
the same opportunities currently available to students from
overseas.
Full-fee paying places are able to be offered in
Australian universities but only after every one of the taxpayer
funded HECS places are filled. It is important to highlight that not
one HECS place is taken by a full fee paying student.
Full fee paying students are only accepted by a
university if they clearly meet the academic standards set by the
University for a particular course – a fact agreed by the Labor
Party.
Currently there is no loan scheme for students from
less wealthy families to assist them taking up such an offer of a
place.
The Backing Australia’s Future higher
education reform package provides for loans of $50,000 with a 3.5%
interest rate plus CPI capped at ten years. As with HECS, repayments
would not begin until a student is earning more than $30,000.
Labor admits full-fee paying Australian students
meet the academic requirements for their courses.
Labor knows none of the relatively small number of
full-fee paying students (less than 2% of the undergraduate
population) take the place of a HECS student.
How then can Labor be determined to ensure that a
loans scheme, designed for those more in need, not be included in
the Higher Education Reform package?
Media contact:
Dr Nelson’s Office: Ross Hampton 0419 484095
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