University students in Melbourne’s north believe crippling debt brought on by an overhaul of the higher education sector will force future generations out of the system.
Last month’s federal budget included plans to deregulate universities from 2016, allowing institutions to set fees for courses.
The federal government’s contribution to degree costs will also decline by an average of 20 per cent from 2016, with students taking on a greater share of the cost.
Interest rates on student loans are also expected to increase, while the income threshold for when graduates must start
paying fees back will be lowered to $50,638.
Hundreds of La Trobe University students were among more than 2000 people who took part in a protest in Spring Street on May 22.
Student union president and second-year arts student Rose Steele, 21, said the changes were an attack on the most vulnerable students.
“La Trobe is the biggest university in the north and many students come from lower socio-economic backgrounds and are the first generations of their families to be tertiary educated,” she said. “The university also has strong partnerships with regional areas, but access will be threatened by these cuts.”
Ms Steele said current students were fearful of increased interest on fees for all students from 2016. Graduates will pay interest of up to 6 per cent on their student loans, up from 2.9 per cent. “Students will live the rest of their lives in poverty, struggling to make their way out of hundreds of thousands of dollars in debt,” Ms Steele said.
International relations student Betty Belay, 20, said cuts to the Newstart allowance would also have a flow-on effect. “These factors combined will deter students from studying at university,” she said.
The government has argued the changes are needed to save $3.2 billion over four years.
