EXPANDING the HECS system to provide money for textbooks, transport and accommodation would remove some of the pressure on university students and parents, one of Australia’s leading education economists says.
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It is a move that could bring particular relief to families in regional areas, where many students need to take gap years to save money for higher education.
Australian National University economics professor Bruce Chapman said the HECS system should offer “income contingent loans” to cover a limited number of student expenses.
Students would receive “top-up” payments during their courses and pay back the money later in life, in line with their level of income.
Professor Chapman said applying a surcharge of around 25 per cent would cover most of the government’s interest and administration costs.
“That’s the beauty of all this,” he said.
“It really doesn’t hurt the taxpayer too much; at the same time it helps the student when they need the help.”
A 2012 survey by the National Centre for Vocational Education Research found students in regional areas were 30 per cent more likely to take a gap year than students in metropolitan areas.
Sarah Taylor, chief executive of the Country Education Foundation, said this higher rate reflected an economic necessity.
“They are not taking gap years to find themselves or go gallivanting around Europe,” Ms Taylor said.
“Many are really weighing up their options and even wondering whether they can afford to go to university at all.”
Ms Taylor said accomodation and relocation proved the biggest costs.
“It’s about $25,000 to $35,000 a year for your living expenses,” she said.
“You could add anywhere between $2000 to $3000 for relocation costs.”
Sarah Gilpin, 18, has returned to St John’s College Dubbo to work as a teacher aide this year, earning money to help support herself when attending the Sydney Film School.
“Being a student isn’t cheap,” Ms Gilpin said, nominating accomodation and transport as the largest costs she would face.
Gabe Dunn, 18, is working three jobs this year to save up before studying arts at the University of New England at Armidale next year.
The teacher aide, musician and waiter said living on campus would be expensive.
“You need to be prepared to pay a bit more for accommodation,” Mr Dunn said.
Dubbo College graduate Natasha Wykes, set to study arts and law at ANU, said she was taking a gap year to earn money toward Youth Allowance.
She said the fortnightly allowance would reduce the pressure on her to work a lot while studying.
