A university Vice-Chancellor claims Prime Minister Anthony Albanese’s plan to reduce student debt does not go far enough in tackling the “broken” and “deeply unfair” system.
On Sunday, Mr Albanese vowed to wipe 20 per cent from existing student debts and reform payments in a move designed to ensure the education system is “better and fairer”.
About $16bn in student debt would be cut from existing student loan accounts as of June next year, meaning average HELP debts of $27,600 would be slashed by about $5,520.
The reforms would also raise the threshold for repayment from $54,000 to $67,000 and lower the rate to be repaid.
Prime Minister Anthony Albanese has proposed sweeping reforms for student debt. Picture: NewsWire / Dean Martin
Western Sydney University Vice-Chancellor, George Williams, said the proposed reforms were “extremely welcome” but warned they did not go far enough in addressing the cause of Australia’s “broken higher education system”.
“We continue to call for immediate action to deal with the root of the debt spiral problem,” he said.
“The system for setting student fees in the first place is broken and deeply unfair. Today’s changes do nothing for new university students facing inflated fees.”
Professor Williams called for “a commonsense and fair approach” to the cost of university degrees, some of which cost so much that students are “priced out” of following their dreams.
“The fact that a three-year Arts degree now costs $50,000 is actively discouraging some students from considering or staying at university,” he said.
“We need action on all fronts: student loan repayments and the overall cost of degrees.”
The Western Sydney University Vice-Chancellor noted Arts degrees have been an entry point to tertiary study for Indigenous, low socio-economic, first-in-family, and female students.
“Students cannot wait for a yet to be established Australian Tertiary Education Commission to potentially deal with the high cost of arts and humanities courses, we need to fix this unfinished business now,” he said.
Mr Albanese’s proposed reform would apply to all Higher Education Loan Program, Vet Student Loans, Australian Apprenticeship Support Loans and other income-contingent student loans.
University of Western Sydney Vice Chancellor, George Williams, said the reforms do not address the high cost of university degrees.
He said the legislation would be introduced in June next year if Labor is re-elected during the upcoming federal election.
“It helps everyone repaying a student debt right now, and it also delivers a better deal for every student in the years ahead,” the Prime Minister said on Sunday.
“This is about putting money back into your pocket and putting intergenerational equity back into the system.”
The student debt plan was criticised by senior Coalition senator Simon Birmingham, who argued it wasn’t “real reform” and accused Mr Albanese of trying to “hoodwink” young Australians.
“This doesn’t change the student fees that somebody who starts uni next year pays,” he told Sky News on Sunday.
Labor’s proposal comes after the Albanese reformed the way in which student loans are indexed earlier this year, which is set to wipe $3bn from student debts.
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