Three NSW regional universities have high student drop-out rates, according to figures released by the federal department of education.
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Charles Sturt, Southern Cross and the University of New England lost between 22 and 24 per cent of their student cohort in 2014, the latest year in which adjusted student attrition data is available.
The report showed drop-out rates in Australian universities have reached their highest level in a decade, as universities enrol record numbers of students across the country.
Up to one in five students now drop out, according to the figures.
Nationally, the University of Tasmania had the highest attrition rate, with 46 per cent of students dropping out.
In Sydney, Western Sydney University had the most significant drop-out rate of the major universities with 14 per cent of students not completing the courses in which they initially enrolled, a figure that remained below the national average.
UNSW had the lowest number of students leaving the university with fewer than 5 per cent of students departing the Kensington campus, while just under 6 per cent of the more than 40,000 students at University of Sydney opted to not pursue their chosen field of study.
The figures come as record numbers of students enrol in universities across the country. For the first time, more than one million domestic students are currently studying in tertiary institutions.
While the numbers reflect an increasingly educated workforce, they have also sparked concerns over quality and growing public student debt, set to blow out by 560 per cent over the next decade to $180 billion.
In January, Fairfax Media revealed students with Australian Tertiary Admissions Ranks as low as 30 were being admitted to university, while tens of thousands of students were being enrolled below the advertised course cut-offs.
On Wednesday, Education Minister Simon Birmingham warned the sector it must take responsibility for the welfare of the students it enrolled.
"Student experiences show there's a range of factors that lead to student attrition and it is going to take concerted efforts from educators and policymakers to reduce it," Mr Birmingham said.
"Universities and higher education providers in particular must take responsibility for the students they enrol because the attrition rate has hovered around 15 per cent for the last decade."