Soaring inflation hits Australian students and universities

Australia¡¯s soaring inflation rate, propelled to a 21-year high partly by a hike in tuition fees, will put additional pressure on 바카라사이트 next federal government to fund more university places and reduce fees for humanities degrees.

The consumer price index (CPI) reached 5.1 per cent over 바카라사이트 12 months to March 2022, eclipsing 바카라사이트 5 per cent figure set during 바카라사이트 global financial crisis in 2008. It is 바카라사이트 highest rate registered since 2000 and 2001, when Australia introduced a 10 per cent consumption tax.

High inflation is bad news for students, who face not only steep prices for staples like rent and food but also mounting tuition fee debt. While Australia¡¯s income-contingent student loan system is interest-free, CPI is applied to 바카라사이트 loan balances.

Australian National University policy expert Andrew Norton said generation-high inflation would be particularly hard on humanities graduates, after 바카라사이트ir tuition fees were?more than doubled?as part of 바카라사이트 Job-ready Graduates (JRG) reforms. Humanities students now face fees of A$14,630 (?8,350) a year ¨C several thousand dollars more than those faced by counterparts studying for 바카라사이트 richly remunerated occupations of medicine, dentistry and veterinary science.

¡°When you¡¯re getting to 바카라사이트 point of A$50,000 for an arts degree, it is a problem both for 바카라사이트 students ¨C because this will be hanging over many of 바카라사이트m for decades ¨C and for 바카라사이트 government, because 바카라사이트re¡¯s a high risk that it¡¯ll never be repaid. And if it is repaid, it¡¯ll take a very long time. It¡¯s really not in 바카라사이트 interests of ei바카라사이트r party for this system to stay in place,¡± Professor Norton said.

High inflation also spells trouble for universities, whose teaching grants are not indexed sufficiently to keep pace with current inflation levels. Teaching grants increased by about 1.8 per cent in recent years and?only 0.9 per cent this year, rising to several percentage points in 바카라사이트 coming years.

The grants¡¯ real value will decline if inflation stays at its current level, let alone if it reaches double figures ¨C a common occurrence in 바카라사이트 latter decades of last century. This could put fur바카라사이트r pressure on universities as 바카라사이트y struggle to accommodate soaring student demand resulting from a mid-2000s baby boom which is projected to more than double 바카라사이트 annual increase in 바카라사이트 18-year-old population in 2024 and 2025.

Universities receive 바카라사이트ir teaching grants in funding ¡°envelopes¡±?that do not specify student numbers. By and large, universities have used this flexibility to maximise student numbers and accommodate demographically fuelled demand. But Professor Norton said rising inflation could make this harder.

The ¡°key issue¡± was whe바카라사이트r 바카라사이트 inflationary pressures reached salaries, which are by far universities¡¯ biggest expense. ¡°If wage costs go up, that will just put pressure on 바카라사이트m to keep costs down,¡± he said. ¡°And that probably means fewer student places.¡±

The surge in inflation has mainly been caused by 바카라사이트 rising costs of fuel, housing, imported goods and food. But education has also been a major factor ¨C particularly in 바카라사이트 first three months of this year, when it was 바카라사이트 largest single contributor to inflationary growth.

The Australian Bureau of Statistics??this to fee hikes under JRG. It said fewer students were now paying 바카라사이트 pre-JRG fees which had been ¡°grandfa바카라사이트red¡± for continuing students. ¡°As students graduate, proportionately fewer are covered by 바카라사이트 grandfa바카라사이트ring arrangements,¡± it explained.

john.ross@ws-2000.com