While University funding has been trending downwards per student since the 70’s, cuts have started to ramp up since the election of the current National government in 2008. The recently unveiled budget contained an actual cut to the tertiary education budget, when recently the budget has seen below-inflation increases. Down from $4 billion to $3.9 billion. Funding is not expected to reach 2009 levels until 2016 and by then inflation will have undermined the value of that funding in real terms. Since 2008 the number of university students has increased by 5,000 but funding has decreased by $500 million after inflation. The Universities have survived to an extent by cutting programmes and applying wider cuts to funding levels. The point is being reached where the easier cuts to back-room funding, tutors etc. will not make the savings required at the lower funding levels, redundancies and harsher cuts as seen at Canterbury will become the norm across the country.
Alongside the cuts to general funding pools for the university. The government has been making loans and allowances harder to access. The 10% repayment rate on income over $19,084 has been increased to 12%, in Australia repayments start at 4% on and income of $44,912 and slowly rises to 8% for $83,408 and above. [Read more...]