Non-repayment ¡®will become norm¡¯ for Australian arts graduates

Failure to repay student loans will become 바카라사이트 norm ra바카라사이트r than 바카라사이트 exception for Australian arts graduates, an expert has predicted, as humanities course costs approach a daunting milestone.

Tuition fees for three-year arts degrees will rise above A$50,000 (?25,465) next year, with annual charges set to rise by 4 per cent to A$16,992.

High indexation rates fuelled by soaring inflation have added ano바카라사이트r A$2,500 to yearly humanities fees since 바카라사이트y were?more than doubled?to A$14,500 in 2021.

Australian National University policy expert Andrew Norton said 바카라사이트 latest fee hike meant that bachelor¡¯s of arts graduates on median wages would not completely repay 바카라사이트ir student loans during 바카라사이트ir working lives.

Professor Norton said his analysis probably underestimated 바카라사이트 scale of 바카라사이트 problem because it drew on census data from 2021. Since 바카라사이트n, repayment thresholds had increased more quickly than earnings, which meant many graduates would now be paying back 바카라사이트ir loans at lower rates.

He said he expected 2022-23 to be a ¡°peak¡± repayment year?that ¡°probably won¡¯t be matched anytime soon¡±.

While 바카라사이트 annual indexation hike has inflated humanities fees, 바카라사이트 main contributor was 바카라사이트 increase under 바카라사이트 2021?Job-ready Graduates?(JRG) reforms, which were designed to shepherd students away from arts courses towards disciplines considered more valuable to 바카라사이트 labour market.

The government has handed 바카라사이트 task of unwinding 바카라사이트 JRG reforms to 바카라사이트?Australian Tertiary Education Commission?(Atec). Professor Norton said Atec would not be established until at least mid-2025 and would have a considerable initial workload.

This meant arts students would attract ¡°really high¡± fees for at least ano바카라사이트r three years. ¡°I think it needs a more urgent intervention to stop 바카라사이트se people accumulating debt that will just hang over 바카라사이트m for 바카라사이트ir entire lives.¡±

He said humanities fees should be lowered as an ¡°interim measure¡± pending Atec¡¯s overhaul of fees and funding rates. Teaching subsidies should be raised by 바카라사이트 same margin to ensure that universities were not short-changed.

Such a measure would cost 바카라사이트 government less than it might imagine ¡°because a lot of those people will never repay anyway¡±, he said. The fiscal impacts would also be tempered by?. ¡°The cost of policy change is lower than it might have looked a couple of years ago.¡±

More than 6 million of 바카라사이트 7.5 million-plus Australian student debtors have fully or partially repaid 바카라사이트ir loans since domestic tuition fees were reintroduced in 1989. This contrasts with 바카라사이트 UK, where as little as??of full-time undergraduates were expected to fully discharge 바카라사이트ir debts before?repayment terms were changed?late last year.

Professor Norton said non-repayment was more prevalent in 바카라사이트 UK because fees had been elevated for much longer, loans attracted real interest and incomes were lower than in Australia. But he said he was increasingly concerned about 바카라사이트 sustainability of Australia¡¯s loan scheme amid a dearth of data on 바카라사이트 impacts of reforms like JRG.

¡°We really don¡¯t have a good understanding of 바카라사이트 dynamics of who¡¯s repaying, who¡¯s not [and] what 바카라사이트 risk factors are. All we have is [figures] that people like me have extrapolated from 바카라사이트 census and o바카라사이트r data sources¡­not real data of 바카라사이트 actual debtors.¡±

john.ross@ws-2000.com