The Universities Accord final report makes recommendations that could significantly change what many Australian students pay for their higher education.
It can be argued universities also have a moral obligation to educate students about how course fees are charged and then repaid when they start working.
The federal government is contemplating the biggest overhaul of higher education in a generation. One issue crying out for more attention in the Universities Accord process is student loans.
Huge disparities in how much students pay for courses mean graduates of high-fee disciplines will take longer to repay their debts or might never do so. That will ultimately add to government debt.
Taxpayers, including those paying tuition fees with FEE-HELP loans, can claim a deduction for self-education expenses that relate to the work they do. But graduates with a HECS-HELP debt can’t claim.
With HELP debt likely to increase to A$75 billion in 2020, research from the US shows offering students financial literacy courses may be a gentler way to combat student debt.
Senators should consider how repayment thresholds vary depending on family circumstances, the impacts on taxes and how long students will be saddled with debt.
Andrew Norton, Grattan Institute and Conor King, La Trobe University
Students currently pay higher fees for courses that lead to jobs with typically higher wages. But not all students find, or want, a job in their area of study. Should all students then pay the same amount for their university degree?