The Gov Is Cutting Increases to Uni Funding, But What Does It Actually Mean for Students?

A new report shows universities are getting more funding, but the government doesn’t think its going directly to students.

A Deloitte Access Economics report, commissioned by the federal government, has revealed that between 2010 and 2015, the cost of delivering a degree had increased by 9.5 per cent, but funding had seen a 15 per cent increase. 

This report is set to become the justification for new cuts, or efficiency dividends, to university funding in the looming May 2017 budget.

Senator Simon Birmingham said that universities were receiving a lot of funding, but weren’t accounting for where that funding was going.

"Australian taxpayers gave universities around $16.7 billion in 2016 alone, or around $19,000 per student, which is more than ever before," Birmingham said.

He explained that the Turnbull Government is focused on "getting the best return for every taxpayer dollar invested."

But what could this actually mean for students?

Student Edge spoke to National Union of Students (NUS) President, Sophie Johnston, who was pretty troubled by the government's attack on young people.

"The fact that the government doesn’t see education as an investment in young people, as an investment in the nation, that’s concerning," she said.

There has also been speculation that while the government isn’t likely to deregulate university fees, they might increase them substantially.

"What this will mean is that students will be paying thousands and thousands of dollars more for an education quality that is much worse," Johnston suggested.

On top of the proposed increase to fees, some have speculated that there will also be a decrease in the loan repayment threshold, which sits at $54,869. The threshold could be lowered to $42,000 a year, which is only a few thousand dollars above minimum wage.

"This is almost half of the current median Australian wage," Johnston notes.

"That’s incredibly concerning; that while university fees could be going up by thousands of dollars, students are going to have be paying them back incredibly early, where they’re not earning a huge salary," Johnston said.

And what about on-campus services?

Johnston explained that she's worried what's going to happen with the on-campus experiences of students if they cut further funding.

"At the moment, we’re already seeing courses being cut, class sizes growing exponentially; we’re also seeing support services being cut and amalgamated. That’s happening already."

The budget will be released Tuesday, May 9. (FYI that’s next Tuesday.)

Do you think it's fair that students have to take their turn of 'repairing the budget'?

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