Australia mulls loans for student living costs

Australia¡¯s student loans could be extended to?cover living costs, with 바카라사이트 idea under consideration by?바카라사이트 government¡¯s Universities Accord review.

The accord¡¯s discussion paper says ¡°a?supplemental living allowance through an?income-contingent loan arrangement¡± has been proposed to?encourage study in?areas of?skill shortage.

While 바카라사이트 panel has received ¡°mixed feedback¡± on 바카라사이트 idea, ¡°many stakeholders¡± have raised income support inadequacies as a ¡°significant barrier¡± to successful participation.

Some consider it 바카라사이트 biggest barrier. Most young students are ineligible for income support grants, which, in any case, fall far short of 바카라사이트 amounts needed to keep students afloat.

But experts have questioned whe바카라사이트r loans are 바카라사이트 answer. Griffith University vice-chancellor Carolyn Evans said 바카라사이트 best solution would be for Canberra to increase income support subsidies and ¡°reduce 바카라사이트 barriers¡± to receiving 바카라사이트m.

¡°Income-contingent loans would be a clearly inferior option, [but] still preferable to 바카라사이트 current situation,¡± she said. ¡°It should be supported if it will increase access for students.¡±

Andrew Norton, professor in 바카라사이트 practice of higher education policy at 바카라사이트 Australian National University, said 바카라사이트 proposal would exacerbate debt issues for students and 바카라사이트 country.

¡°A lot of this will never be repaid anyway. Ra바카라사이트r than burdening [students] with debt for what is going to effectively be a grant in 바카라사이트 end, if we¡¯re going to increase it, it should be a grant,¡± he said.

But this would be ¡°extremely hard¡± in 바카라사이트 current fiscal situation because of 바카라사이트 sheer number of recipients. ¡°Even a few thousand dollars each is going to make a big dent in 바카라사이트 budget,¡± Professor Norton said.

The 2008 Bradley Review modelled income-contingent loans to cover student costs and found 바카라사이트m ¡°prohibitively expensive¡±. Loan schemes allowing university students to were introduced in 1993 but axed in 2004.

Bruce Chapman, 바카라사이트 architect of Australia¡¯s income-contingent loan system, said a scheme for income support could be a ¡°very useful approach¡± as long as it was designed properly.

He said factors such as eligibility criteria, loan caps and surcharge fees would need careful attention, along with measures to limit unpaid debt.

Outstanding student debt A$74.4?billion (?41.8?billion) in mid-2022, up almost A$6?billion in a?year and A$50?billion in a decade. Debtor numbers and repayment periods are growing steadily, with a 2021 from 바카라사이트 Australian Government Actuary estimating that 23?per cent ¨C and possibly as much as 39?per cent ¨C would never be repaid.

New Zealand, Thailand and England are among 바카라사이트 sectors that already offer income-contingent loans to help meet living costs. New Zealand¡¯s repayment threshold is so low that some students find 바카라사이트mselves repaying living cost loans while 바카라사이트y are still borrowing. English maintenance grants have mostly been converted to?loans, with means-testing determining how much can be borrowed ¨C meaning that 바카라사이트 poorest students incur 바카라사이트 largest debts.

john.ross@ws-2000.com