HECS not only student burden
Dorothy Illing, Higher education
UNIVERSITY students have become the new generation of borrowers, forced to run up credit card debts, take out private loans and rely on parents and spouses to get a degree.
Dubbed "Generation Debt", 700,000 Australian university students are among those
revolutionising the university experience through a dramatic shift in income support.
A new national report reveals fewer students receive government assistance through Youth Allowance and more are relying on paid work, which, for undergraduates, now makes up to three-quarters of their total income.
They spend less time on campus, skip more lectures and are running up an average private debt of $25,000 - on top of their government HECS loans.
The survey of 18,954 students across 37 universities warns the educational cost of the new generation is taking its toll. "During 2006, many Australian university students reported they were in stressful financial situations and many found it difficult to support themselves week-to-week," the report says. "A large proportion of students ... lacked adequate financial support and many were highly anxious about 'making ends meet' and the debts they were accumulating." The findings go to the heart of heated federal election debate about the cost burden on students and the levels of debt they will carry once they graduate.
Labor has pledged to cut HECS for some students, while the Government argues income-contingent loans do not deter them from going to university. But the private debt incurred by students has gone largely unnoticed in the debate. The independent study was commissioned by the peak Australian Vice-chancellors Committee and conducted by Melbourne University's Centre for the Study of Higher Education. It finds about 70 per cent of full-time undergraduates were working an average of 14.8 hours a week during second semester last year. And 42 per cent of part-time students were working at least 38 hours a week, equivalent to full-time employment. The average annual income from paid work increased from $8386 in 2000 to $11,960 last year, boosting income and improving students' annual deficits. Almost half the students surveyed believed that work was having a detrimental effect on their studies as their private debt ratcheted up. Many said they were working simply to afford necessities, transport, textbooks and other study materials. The study reveals the proportion of students taking out private loans rose from 10.7 per cent in 2000 to 24.4 per cent last year. The level of bank loans jumped by 71 per cent, credit cards by 42 per cent, borrowings from parents 48 per cent, and from spouses, 46 per cent. "
The survey of 18,954 students across 37 universities warns the educational cost of the new generation is taking its toll.
"During 2006, many Australian university students reported they were in stressful financial situations and many found it difficult to support themselves week-to-week," the report says.
"A large proportion of students ... lacked adequate financial support and many were highly anxious about 'making ends meet' and the debts they were accumulating."
The findings go to the heart of heated federal election debate about the cost burden on students and the levels of debt they will carry once they graduate.
Labor has pledged to cut HECS for some students, while the Government argues income-contingent loans do not deter them from going to university.
But the private debt incurred by students has gone largely unnoticed in the debate.
The independent study was commissioned by the peak Australian Vice-chancellors Committee and conducted by Melbourne University's Centre for the Study of Higher Education. It finds about 70 per cent of full-time undergraduates were working an average of 14.8 hours a week during second semester last year. And 42 per cent of part-time students were working at least 38 hours a week, equivalent to full-time employment.
The average annual income from paid work increased from $8386 in 2000 to $11,960 last year, boosting income and improving students' annual deficits.
Almost half the students surveyed believed that work was having a detrimental effect on their studies as their private debt ratcheted up.
Many said they were working simply to afford necessities, transport, textbooks and other study materials.
The study reveals the proportion of students taking out private loans rose from 10.7 per cent in 2000 to 24.4 per cent last year.
The level of bank loans jumped by 71 per cent, credit cards by 42 per cent, borrowings from parents 48 per cent, and from spouses, 46 per cent.
"I think they are not borrowing a lot more money but a lot more of the students are borrowing," University of Western Australia vice-chancellor Alan Robson said. Professor Robson said that while there was considerable private benefit in having a degree, the debt levels were now a concern. The report will be high on the agenda at a meeting of vice-chancellors in Sydney next week. http://news.com.au/newspulse\
"I think they are not borrowing a lot more money but a lot more of the students are borrowing," University of Western Australia vice-chancellor Alan Robson said.
Professor Robson said that while there was considerable private benefit in having a degree, the debt levels were now a concern.
The report will be high on the agenda at a meeting of vice-chancellors in Sydney next week.
sa.pres@nus.asn.au
rhiannon.newman@adelaide.edu.au
Tuesday, March 13, 2007
Iraq: Peace is Possible Forum
IRAQ: Peace is Possible Forum.
Featuring Ruth Russell, Human Shield, International Peace Activist and Lead Democrat Candidate for the Senate in South Australia.
Monday 19th March 6PM
Lecture Theatre 29, Napier Building Adelaide University
Gold Coin Donation
Put on by the Adelaide Uni Democrats Club.
Featuring Ruth Russell, Human Shield, International Peace Activist and Lead Democrat Candidate for the Senate in South Australia.
Monday 19th March 6PM
Lecture Theatre 29, Napier Building Adelaide University
Gold Coin Donation
Put on by the Adelaide Uni Democrats Club.
First Update in Ages
Its been awhile since my last post so this is a big update on 'Demand a Better Future' and whats been going on at Adelaide and beyond. Might do it in separate posts also
Nominations are now open for student reps on Faculty Boards- Give it a go and get involved!
During the week of Monday 2 to Thursday 5 April 2007 elections will be held for student representatives to School and Faculty Boards. Each Faculty Board mustcontain two student representatives – one for undergraduate students and onefor postgraduate students. Each School Committee must contain at least one undergraduate and one postgraduate student representative. Studentrepresentatives are entitled to receive all information put before the Committee/Board, and are entitled to vote in decisions made by the Committee/Board.Nominations must be made on the official form, which can be obtained from yourSchool/Faculty office.
Nomination forms must be received by yourSchool/Faculty Returning Officer before 4pm on Wednesday 28 March, 2007. Further information is available from your School/Faculty office.
* Undergraduate students: All students who are enrolled in at least one fullyear or one semester course in a particular School/Faculty in the current yearare eligible to vote and/or stand for election to that School or FacultyBoard. Students who are enrolled in more than one School/Faculty may therefore choose to stand for and vote in elections in each of the Schools/Faculties inwhich they are enrolled.
* Postgraduate students: All students who are enrolled either full-time or part-time in a particular School/Faculty in the current year are eligible to vote and/or stand for election to that School or Faculty Board. Students whoare enrolled in more than one School/Faculty may therefore choose to stand for enrolled.
Each position is for a term of one year, from the day after the announcement of election results in the current year, to the day of the announcement of election results in the following year. Elections shall be conducted according to the first-past-the-post system. and vote in elections in each of the Schools/Faculties in which they are enrolled.
Nominations are now open for student reps on Faculty Boards- Give it a go and get involved!
During the week of Monday 2 to Thursday 5 April 2007 elections will be held for student representatives to School and Faculty Boards. Each Faculty Board mustcontain two student representatives – one for undergraduate students and onefor postgraduate students. Each School Committee must contain at least one undergraduate and one postgraduate student representative. Studentrepresentatives are entitled to receive all information put before the Committee/Board, and are entitled to vote in decisions made by the Committee/Board.Nominations must be made on the official form, which can be obtained from yourSchool/Faculty office.
Nomination forms must be received by yourSchool/Faculty Returning Officer before 4pm on Wednesday 28 March, 2007. Further information is available from your School/Faculty office.
* Undergraduate students: All students who are enrolled in at least one fullyear or one semester course in a particular School/Faculty in the current yearare eligible to vote and/or stand for election to that School or FacultyBoard. Students who are enrolled in more than one School/Faculty may therefore choose to stand for and vote in elections in each of the Schools/Faculties inwhich they are enrolled.
* Postgraduate students: All students who are enrolled either full-time or part-time in a particular School/Faculty in the current year are eligible to vote and/or stand for election to that School or Faculty Board. Students whoare enrolled in more than one School/Faculty may therefore choose to stand for enrolled.
Each position is for a term of one year, from the day after the announcement of election results in the current year, to the day of the announcement of election results in the following year. Elections shall be conducted according to the first-past-the-post system. and vote in elections in each of the Schools/Faculties in which they are enrolled.
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