A university chancellor says Prime Minister Anthony Albanese’s plan to reduce student debt does not go far enough to address the “broken” and “deeply unfair” system.
On Sunday, Albanese promised to eliminate 20 percent of existing student debt and reform payments in a measure designed to ensure the education system is “better and fairer.”
About $16 billion in student debt would be eliminated from existing student loan accounts starting in June next year, meaning average HELP debts of $27,600 would be reduced by about $5,520.
The reforms would also raise the refund threshold from $54,000 to $67,000 and reduce the rate to be refunded.
Western Sydney University vice-chancellor George Williams said the proposed reforms were “extremely welcome” but warned they did not go far enough to address the cause of Australia’s “broken higher education system”.
“We continue to call for immediate action to address the root of the spiraling debt problem,” he said.
‘Firstly, the system for setting student tuition fees is broken and deeply unfair. Today’s changes do nothing for new college students facing inflated fees.’
Professor Williams called for “a fair and common sense approach” to the cost of university degrees, some of which cost so much that students cannot follow their dreams.
Prime Minister Anthony Albanese (pictured, addressing a Labor campaign rally in Adelaide on Sunday) has proposed sweeping reforms to student debt.
“The fact that a three-year arts degree now costs $50,000 is actively deterring some students from considering or staying in college,” he said.
“We need to act on all fronts: student loan repayments and the overall cost of college.”
Professor Williams noted that arts degrees have been an entry point into tertiary studies for indigenous, low socio-economic status, first-born and female students.
“Students cannot wait for an Australian Tertiary Education Commission to be established to potentially address the high cost of arts and humanities courses – we need to address this outstanding issue now,” he said.
Albanese’s proposed reform would apply to all higher education loan schemes, veterinary student loans, Australian Learning Support Loans and other income-tested student loans.
The Prime Minister’s announcement has sparked calls for “a fair and common sense approach” to the cost of university degrees. (archive image)
The Prime Minister said the legislation would be introduced in June next year if the Labor Party is re-elected during the next federal election.
“It helps everyone pay off student debt right now and also offers a better deal for all students in the years to come,” the Prime Minister said on Sunday.
“It’s about putting money back in your pocket and putting intergenerational equity back into the system.”
The student debt plan was criticized by Coalition senator Simon Birmingham, who argued it was not “real reform” and accused Albanese of trying to “mislead” young Australians.
Western Sydney University vice-chancellor George Williams (pictured) said the reforms do not address the high cost of university degrees.
“This does not change the student fees paid by someone starting university next year,” he told Sky News on Sunday.
Labour’s proposal comes after Albanians reformed the way student loans are indexed earlier this year, which will wipe out $3 billion of student debt.
