University deregulation beginning 2016 (2014 budget) (1 Viewer)

[14]

As you've heard in the 2014 budget, HECS interest is capped higher at 6% and is paid when you earn a slightly lower amount but University fees are also being deregulated starting 1st Jan 2016, which from what I've heard means they can charge as much as they want.

I'm graduating this year and should get a high enough ATAR for most University courses and would start in 2015, so from what I've heard I'd remain on the old system then 2/3 of it would be on the new system. I can't find much about how much each course costs to begin with, one I was looking at was $70,000 currently- my point is from what I can find no one really has any idea how much they're going to start charging. I was planning on doing something in the Commerce area which although probably isn't as "prestigious" as Law or Medicine, if some people are right with what they're saying, the Universities particularly the prestigious ones for prestigious degrees will charge as much as they want. I don't go to a private school and my family is far from rich, I can't help but feel turned off going to University if the fees are significantly increased.

What do you guys think of this?

 

[Chronost]

Firstly HECS interest isn't up 6%, it will be linked with the government bond rate, which is CAPPED at 6%, that means the HECS interest can't go above 6% per annum, it'll will likely be quite lower than unless for some odd reason bond rates shoot through the roof(and bonds are usually quite stable way below 6%). Another thing is the deregulation of uni fees starts from 2016, but existing students WONT be affected, they will get to keep their existing arrangements as loing as they finish uni before Dec 2020.

 

[Trebla]

Not happy that this HECS change applies to everyone with a HECS debt regardless of when they started uni

 

[Chronost]

Not happy that this HECS change applies to everyone with a HECS debt regardless of when they started uni

Better start paying off quickly, although you can still earn more through big 4 bank dividends then the current bond rate, so you can still make a profit through waiting and putting money elsewhere.

 

[obliviousninja]

I pay outright. Suckerz

Sent from my GT-I9506 using Tapatalk

 

[Drifting95]

Better start paying off quickly, although you can still earn more through big 4 bank dividends then the current bond rate, so you can still make a profit through waiting and putting money elsewhere.

I like this non pleb way of thinking

 

[Drifting95]

I pay outright. Suckerz

Sent from my GT-I9506 using Tapatalk

Go to ivy league then?

 

[Hatake88]

I still count as a "current student" if I switch unis at the end of this year, right?

 

[Drifting95]

I still count as a "current student" if I switch unis at the end of this year, right?

Yes.

Refer to the government site, the media can hardly be trusted for details

http://studyassist.gov.au/sites/studyassist/helpfulresources/pages/studentoverview_budget2014

 

[14]

Firstly HECS interest isn't up 6%, it will be linked with the government bond rate, which is CAPPED at 6%, that means the HECS interest can't go above 6% per annum, it'll will likely be quite lower than unless for some odd reason bond rates shoot through the roof(and bonds are usually quite stable way below 6%). Another thing is the deregulation of uni fees starts from 2016, but existing students WONT be affected, they will get to keep their existing arrangements as loing as they finish uni before Dec 2020.

Yeah sorry worded the capping bit wrongly. With the deregulation starting in 2016, apart from existing students wouldn't those enrolling in 2015 be the final group of people unaffected as they'd be the last group to go through and still qualify as existing students before 2016?

 

[Chronost]

Yeah sorry worded the capping bit wrongly. With the deregulation starting in 2016, apart from existing students wouldn't those enrolling in 2015 be the final group of people unaffected as they'd be the last group to go through and still qualify as existing students before 2016?

Yes and you won't be affected like you said you would be.

 

[Drifting95]

Yeah sorry worded the capping bit wrongly. With the deregulation starting in 2016, apart from existing students wouldn't those enrolling in 2015 be the final group of people unaffected as they'd be the last group to go through and still qualify as existing students before 2016?

No.

The new funding arrangements will affect all Commonwealth supported students who accept an offer of enrolment after 13 May 2014. Changes to Commonwealth subsidies and student contributions do not take effect until 1 January 2016. Students who accept a Commonwealth Supported Place (CSP) on or after 14 May 2014 will be charged under the existing arrangements until 31 December 2015.

For those enrolling in 2015, you will pay the current capped amount for 1 year (2015) but from 2016 onwards you'll be liable to pay the increased fees that the university sets. This differs from current students who will continue to pay the current amounts until their degree finishes or 2020 (whichever occurs first), only after will current students then need to pay higher fees.

 

[Rafy]

http://www.theaustralian.com.au/new...from-2016-abbott/story-fn3dxiwe-1226924992372

NEW university fee structures will only apply to students who enrol in courses from 2016 when the changes come into effect, Prime Minister Tony Abbott says.

Mr Abbott reassured students signing up for courses this year and next year their fee structure would not change mid-course.

"If you start a course under one system you'll finish it under that system," Mr Abbott told ABC radio on Wednesday.[...]

"If you are studying now your conditions of study won't change. If you start next year your conditions of study won't change. It's only for those who start when these changes kick-in in 2016 that will have the different conditions applying to them," Mr Abbott said.

 

[reallydontcare]

NEW university fee structures will only apply to students who enrol in courses from 2016 when the changes come into effect, Prime Minister Tony Abbott says.

Mr Abbott reassured students signing up for courses this year and next year their fee structure would not change mid-course.

"If you start a course under one system you'll finish it under that system," Mr Abbott told ABC radio on Wednesday.[...]

"If you are studying now your conditions of study won't change. If you start next year your conditions of study won't change. It's only for those who start when these changes kick-in in 2016 that will have the different conditions applying to them," Mr Abbott said.

i hope they hold him to this

 

[bangladesh]

You guys all seem so relieved by the fact that it's not affecting you, yet non of you thinks of the possibility of you coming back to uni and doing a masters degree/postgrad course; this could mean that you'll be paying much much more than you would if the fees weren't deregulated.

 

[Amleops]

I intend to be in university for a while myself, so I'm pretty certain the increased fees will affect me. Even so, I don't get all of this hysteria about the fee deregulation.

Perhaps I am an idealist, but the way I see it is: deregulation would lead to unis raising fees, which in turn would increase their revenue, which would then be invested into further teaching and research projects. Thus the students would benefit from the increased quality of education, and I see no reason why a student would not be willing to pay more in return for that better quality education.

Judging by what they have said, an increase in quality of tertiary education is what the Government wants to happen as well. Not sure whether they intend that it will happen in the way I just described, but I can't think of any other possible way.

 

[wannaspoon]

If you are in university now, the fee increases won't affect you till 2020... If you are starting university from 2016 onwards the fee increases will affect you... to be quite honest with you, 99.99% of people who have posted their objections to these changes in this thread have absolutely nothing to worry about because nothing will change for them...

those piss farts which are also protesting in Melbourne at the moment also have nothing to worry about... admittedly, those in year 10 and below at the moment are going to get arse raped... but still, tough tits!!

 

[bangladesh]

I intend to be in university for a while myself, so I'm pretty certain the increased fees will affect me. Even so, I don't get all of this hysteria about the fee deregulation.

Perhaps I am an idealist, but the way I see it is: deregulation would lead to unis raising fees, which in turn would increase their revenue, which would then be invested into further teaching and research projects. Thus the students would benefit from the increased quality of education, and I see no reason why a student would not be willing to pay more in return for that better quality education.

Judging by what they have said, an increase in quality of tertiary education is what the Government wants to happen as well. Not sure whether they intend that it will happen in the way I just described, but I can't think of any other possible way.

Fees for medicine courses are set to rise by about 300% (from 10k to around 44k per year)That's a total of ~120k on top of what you would normally pay for a medicine degree and I'm sure that the quality of teaching is good enough to produce good doctors otherwise they wouldn't be able to get permission from the AMA.
Your mistake here is that you think the money will be invested into further teaching and research projects. Wrong, most of it probably won't be invested into further teaching but into research money for the academics which the students will benefit from very slightly (if at all)

 

[bangladesh]

If you are in university now, the fee increases won't affect you till 2020... If you are starting university from 2016 onwards the fee increases will affect you... to be quite honest with your, 99.99% of people who have posted their objections to these changes in this thread have absolutely nothing to worry about because nothing will change for them...

those piss farts which are also protesting in Melbourne at the moment also have nothing to worry about... admittedly, those in year 10 and below at the moment are going to get arse raped... but still, tough tits!!

you sir, are very close minded

 

[D94]

I intend to be in university for a while myself, so I'm pretty certain the increased fees will affect me. Even so, I don't get all of this hysteria about the fee deregulation.

Perhaps I am an idealist, but the way I see it is: deregulation would lead to unis raising fees, which in turn would increase their revenue, which would then be invested into further teaching and research projects. Thus the students would benefit from the increased quality of education, and I see no reason why a student would not be willing to pay more in return for that better quality education.

Judging by what they have said, an increase in quality of tertiary education is what the Government wants to happen as well. Not sure whether they intend that it will happen in the way I just described, but I can't think of any other possible way.

That is a sweeping assumption. Universities are primarily for research so most of the money will almost certainly go to research (bar that low socio-economic scholarship fund). There is no reason or mandate for teaching quality to increase just because the university has more funding. I would go as far as saying since more money will be invested into research, lecturers (who are almost always a researcher) will be more focused on that, and less on teaching, thus decreasing the quality of teaching. One sweeping assumption for another.

The government claims some uni fees will rise and some will decrease. It is very unlikely for any fees to decrease considering most, if not all, Go8 universities charge the maximum fee at the moment. Hockey said he would be surprised if fees increased by 30%. If universities are joining the bandwagon that since HECS is a concessional loan, and that students only need to pay it off once they earn more than $50,000, then they could very well decide to increase fees by more than 30%. Universities will have the power to match domestic student fees to international student fees, and that has a minimum 70% increase in fees, up to almost 300% for medicine.

Much of the government's logic derives from their claim that those with a university education will earn more than $1 million over a life time compared to someone without a university education. I don't think they've looked at the job market and the number of graduates who have the skills and education, but have not been able to land a graduate job. On Q&A, some guy from Tasmania highlighted the exact same situation. Whilst currently graduates take around 9-10 years to pay off their HECS, it's unknown how much longer it will take to pay off under these new conditions. It could take someone 15 years to pay off a $100,000 debt, and that could have issues later down the track with getting a home loan or anything money-wise.

The other issue floating around is that this is leading to a US styled system. Even though we have HECS, the deregulation can be an argument for the government to suggest concessional loaning is impossible to maintain, hence selling off the debt, allowing universities to charge students upfront at full fee.