Fee-HELP! Interest Rates for Postgraduate Coursework Fee Loans

In a shock move the Federal government tonight announced that the Postgraduate Education Loans Scheme would offer loans for postgraduate coursework fees with a 3.5% interest rate from 2005.

Previously the loans have been interest-free, like HECS. Both HECS and PELS will be rolled into a new scheme, called Higher Education Loans Program, or, ironically, HELP. (PELS will be called Fee-HELP).

"We didn't think they could do anything more to postgraduates but they have," said CAPA President, Benjamin McKay tonight.

The PELS scheme, which came into operation in January 2002, allows universities to set fees at the level of their choice for most postgraduate coursework programs. At some universities fees are up to $36,000 per year.

"The HELP scheme will also be an increase from HECS fee levels of 30%. Student fee revenue will now make up 35% of universities operating budgets. This means students are paying for the government's failure to properly fund higher education. This is not a government who is serious about quality higher education," McKay commented.

"Postgraduate coursework degrees allow people to refine and specialise their skills. We keep hearing that we need a skilled workforce. There could hardly be a bigger disincentive to up-skill than being forced to pay market interest on already overblown fees," McKay said.

Other aspects of the long awaited Nelson review of higher education are disappointing too. Funding will be tied to industrial and governance reform.

"Bribing universities to commit to the government's draconian industrial relations agenda, to remove students and staff from university governing bodies, and implement so-called voluntary student unionism is not on," said McKay.