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Higher Education Reforms – Information for Students (2003)

• Overview

• The new student support system

  • Partial deregulation of course fees

  • Commonwealth course contributions

  • Learning Entitlement

  • Commonwealth Learning Scholarships

  • Higher Education Loan Programme (HELP)

  • Higher Education Information Management System (HEIMS)

• Effect on current HECS students

• Changes to PELS, OLDPS and BOTPLS

• Further information

Overview

Following from the 2002 Review of Higher Education, the Commonwealth Government has announced a package of new higher education policies, to be implemented between 2004 and 2008.

Laying the foundation for this ten year vision, approximately $1.5 billion in additional funding will be invested in higher education over the next four years, with more than $660 million in additional funding per year from 2007. Over the next ten years, the Commonwealth will provide an estimated $6.9 billion in additional funding to the higher education sector and approximately $3.7 billion to support new student loans.

The reforms will ensure that no Australian citizen is prevented from attending a Commonwealth supported higher education institution based on their ability to pay fees, and that there are increased opportunities for students to undertake the course of their choice.

New Commonwealth scholarships will be offered to expand educational opportunities and choices for students from educationally disadvantaged backgrounds. The sector will also receive increased Commonwealth funding to improve participation and outcomes for people from identified equity groups.

Other new measures will act to strengthen the quality of undergraduate learning experiences through a greater focus on learning and teaching performance.

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The new student support system

Partial deregulation of course fees

From 2005 the Commonwealth will no longer set standard student contributions through the Higher Education Contribution Scheme (HECS). Rather, institutions will be responsible for setting student contributions, within Commonwealth determined ranges, which will vary between disciplines and institutions.

Commonwealth course contributions

Most undergraduate students will be Commonwealth supported students. For these students, the Commonwealth will continue to contribute towards the cost of the course for each student each year, depending on the discipline.

Learning Entitlement

All eligible Australian citizens, New Zealand citizens and holders of Australian permanent visas will be provided with a Learning Entitlement, which will allow them to access a Commonwealth supported place for five years of equivalent full-time study (longer if studying part-time). The five year entitlement will be extended where a student is undertaking an undergraduate course or pathway in which the normal enrolment period is longer than five years (e.g. medicine at undergraduate or graduate degree levels or double degrees with honours). Learning Entitlement appeal mechanisms and associated remission of debts, where circumstances prevent students from completing studies, will be the responsibility of institutions.

Commonwealth Learning Scholarships

The Commonwealth will establish a new scholarship programme to help Australian students enrolled in Commonwealth supported places, to meet accommodation and educational expenses while studying.

Higher Education Loan Programme (HELP)

From 2005 there will be a suite of income contingent loans for Australian citizens and holders of permanent humanitarian visas to assist them with the payment of their tuition fees:

• HECS-HELP – for eligible students enrolled in Commonwealth supported places, to be used to cover their contribution to the tuition.

• FEE-HELP – for eligible fee paying students enrolled at eligible higher education institutions. Loans will cover up to the full amount of their tuition fees with students able to borrow up to $50,000.

• OS-HELP - for eligible full-time Commonwealth supported students who wish to study one or two semesters overseas. Loans will be up to $10,000.

Debts accrued under HECS-HELP will be indexed to the Consumer Price Index (CPI). Debts accrued under FEE-HELP and OS-HELP will be indexed to the CPI plus 3.5 percentage points each year for a maximum of ten years, before returning to indexation by the CPI. Repayments for all HELP loans will be income contingent. Students will not be required to start paying their HELP debts until their income reaches $30,000 (2005-06).

Higher Education Information Management System (HEIMS)

Students will be able to access up-to-date information on their Learning Entitlement and other details of their loan/s on the web based HEIMS using their Commonwealth Higher Education Student Support Number (CHESSN). HEIMS will also contain information on tuition fees and admission requirements for higher education courses supported by the Commonwealth.

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Effect on current HECS students

Current HECS students, both full-time and part-time, will be able to study under current HECS contribution levels set by the Commonwealth until the end of 2008 unless they:

• discontinue their enrolment without formally deferring; or

• complete their current course; or

• complete another award at the same level as their current course; or

• choose to study under the new system.

Students commencing their course as a HECS student in 2004, both full-time and part-time, will be able to study under current HECS contribution levels set by the Commonwealth until the end of 2008, unless they -

• defer from their studies and do not incur a HECS liability (occurs on a HECS census date) in 2004. (see Will students accepting an offer to study in 2004 be subject to the new arrangements? in Student Information: Questions and Answers for important information);

This means that most students who undertake study in a HECS place either in 2003 or 2004 and, if commencing in 2004, incur a HECS liability in 2004, will be able to complete their course under the current student funding arrangements.

Changes to HECS from 2005 are as follows:

• All continuing HECS students will begin to access their Learning Entitlement from 1 January 2005.

• The discount for up front payments of HECS will change from 25% to 20% from 1 January 2005.

• The minimum HECS repayment threshold will increase to $30,000 from 2005 (currently $24,365), the bottom two repayment bands will be removed, and new repayment bands will be added at the higher income levels.

• The bonus on voluntary repayments over $500 will change from 15% to 10% from 1 January 2005. There will be no bonus for voluntary repayment of FEE-HELP or OS-HELP debts.

• Compulsory repayments will be directed to HECS and HECS-HELP debts before FEE-HELP or OS-HELP debts.

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Changes to PELS, OLDPS and BOTPLS

FEE-HELP will replace the existing Postgraduate Education Loan Scheme (PELS), Open Learning Deferred Payment Scheme (OLDPS) and Bridging for Overseas-Trained Professionals Loan Scheme (BOTPLS) from 1 January 2005. Current PELS students, and PELS students commencing in 2004, will continue to have access to PELS until they discontinue or complete their course or until the end of 2008, whichever comes first. Under FEE-HELP, students studying through Open Universities Australia (OLA) may borrow up to the full amount of the tuition fee charged by OLA.

The changes to HECS repayment arrangements mentioned above, also apply to PELS, OLDPS and BOTPLS debtors.

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Further information

For more information about the reforms and changes to student financing, go to the website: www.backingaustraliasfuture.gov.au

For more information about current HECS, PELS, OLDPS and BOTPLS arrangements, go to the HECS website: www.hecs.gov.au

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Any comments or queries should be sent to: highered@dest.gov.au
This page was last updated on Monday, 04 August 2008

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