'Irrational' Australian funding system set for overhaul

Australia's tertiary education funding system is "at best complex and at worst anomalous, inconsistent and irrational" says a government review.

Students can get debts of between AU$12,000 and AU$102,000 for courses of similar length and while agriculture students pay 28 percent of the cost of their course, with the rest subsidised by the Federal government, law students pay 84 percent of theirs, the review notes as examples.

The wide-ranging review will be competed by the end of the year and it could mean the overhaul of the Higher Education Contribution Scheme (HECS) funding system, which includes student loans and financial assistance.

The review will look at a wide range of issues including the ability of the tertiary education sector to cater to workforce demands, the adequacy of university funding arrangements and how to measure the quality of the student experience.

Within the current system of financing, higher education students pay widely differing amounts towards the costs of their courses, contribute widely differing proportions of the costs, and have different degrees of access to income support and income-contingent loans," the review's discussion paper says.

Australian education minister Julia Gillard is also aiming to improve the tertiary education sector’s contribution to higher productivity and labour market participation.

Further information on the review is at this web page.