Massive fee hikes confirm student fears

The decision by the University of Melbourne to increase the cost of its postgraduate coursework degrees by as much as 31 per cent in 2003, has confirmed student fears that PELS will spark further fee increases.

"It is reprehensible that the University of Melbourne can increase student fees for postgraduate coursework degrees at the same time as student satisfaction with the quality of these courses is declining," commented CAPA President Leisa Ridges.

"Unfortunately this is indicative of a national trend, where the Government's Postgraduate Education Loans Scheme (PELS) has provided an open slather for universities to further increase student fees," she continued.

PELS, introduced this year, enables postgraduate coursework students to defer payment of their course fees until their income exceeds a threshold of $23,242.

However, PELS differs dramatically from the undergraduate HECS. While HECS caps students' contribution to the cost of their degree to $3598, $5125 or $5999 per year, depending on their course, postgraduate coursework students must pay the full cost of their degree.

Since 1996, universities have been free from any restraint on the fees they set for coursework postgraduate degrees.

In 2001, coursework postgraduate students typically paid between $10,000 and $20,000 per year for a Masters degree. Students commencing the Juris Doctor degree at the University of Melbourne this year paid $72,000 ($36,000 per year).

"Since PELS was first mooted last year, CAPA has been concerned that allowing students to defer payment of their fees, while enabling people who previously could not afford to study access to coursework degrees, would also result in price hikes," added Ms Ridges.

"Since the 1996 cuts to university operating grants, universities have frequently resorted cross-subsidising courses through postgraduate coursework fees."

"Loan scheme or not, full fees remain a deterrent for participation. The introduction of PELS simply gives potential postgraduate students a choice between a huge bill up-front or a huge debt to be re-paid" said Ms Ridges.

"The only way we can prevent spiralling student debt is to regulate postgraduate coursework fees and increase public investment in higher education," she concluded.