Australian universities seek to attract private finance

Australian universities are increasing efforts to attract more private finance amid fears of budget freezes and cuts, the Australian reports.

Some universities wanted public-private partnerships in infrastructure provision and even in research funding.

The sector also believed that the government could consider topping up money for university infrastructure by issuing bonds backed by HECS (student loan) repayments.

Other proposals included extending HECS-like income-contingent loans to international students to support demand, as students from overseas were now a key revenue source for the sector.

Using private funds to offer income-contingent loans to international students was seen as a way of shoring up Australia’s competitive edge in the international student market, where competition was rising.

Education was now Australia’s largest service export earner, bringing in AU$15.5 billion a year.

Under the proposal, the private sector could offer loans to international students that could be backed by government through tax agreements with source countries, the Australian reported.

These countries would collect the tax through their own system and remit it back to Australia while being covered for the cost.

To read the full report in the Australian, go to this web page.