Does HECS deter? Falling applications suggest that it does
15 November 2000
The National Tertiary Education Union (NTEU) criticised Education Minister David Kemp for attempting to ‘gloss over’ another fall in applications for university places.
In 2000, there were 8,400 fewer applications for undergraduate study than in 1996. Among mature-age (non-school leaver) applicants, the fall has been even more marked. Preliminary figures released by the NSW University Admissions Centre suggest that in that state alone, applications for university places in 2001 have fallen by around 25% among older applicants.
NTEU President Dr Carolyn Allport said that the Minister was in denial. ‘He insists that falling application rates for university places in NSW are the result of ‘strong employment prospects’, and continues to ignore the impact of increased costs of study on prospective students,’ she said.
Since 1996, the Higher Education Contribution Scheme (HECS) has increased from $2,500 per year to a fee ranging from $3,500 to $5,800 per year. More significantly, the threshold at which students must begin repaying their HECS debt has been lowered from Average Male Weekly Earnings to around $22,400 per year.
‘For students already earning this amount –especially those who must support themselves through study, or have dependents or other financial commitments – HECS is NOT a ‘deferred payment scheme’’ said Dr Allport. ‘They must start paying HECS as soon as they start to study, and before they reap the financial benefits. For many, this is a serious financial decision.’
Dr Allport said that the financial burden created by HECS may well be one reason why the number of mature-age (non-school leaver) applicants for university places has fallen each year since the changes were introduced. She pointed out that the Government had undertaken no study specifically looking at the impact of increased fees on older students since 1997, when an initial study suggested HECS charges were having a deterrent effect.
‘Given the importance of lifelong learning to people’s job prospects, and to the economy generally, this is a matter of public importance that the Government is trying to ignore.’
‘In an election year, with education the top-polling issue in the electorate, there is a clear challenge for the ALP as well as the Federal Government. Action must be taken to reform HECS to ensure that it does not pose a barrier to participation in higher education.’