Well said rconnor
zdas04 said:
I was talking about this to a recent graduate in Australia and she said that her student loans are paid by her income tax.
Yeah, what you refer to is the HECS loan (higher education contribution scheme) provided by the Australian government. Its interest free, but it is indexed for inflation each year. The taxation office starts adding your repayments to your income tax once you reach $44,000.
Almost all of our universities are public and the majority of their funding comes from the government, unlike the US which has a mix of public and private with the UC's and ivy league and all that. As such, the government placed a "cap" on the number of HECS available seats offered for each course at the respective university, say bachelor of engineering at university X will admit 1000 HECS students for the 2014 year. If your wealthy enough, you can just pay the fees up front, international students are ineligible.
As almost 90% of australian students are HECS students, this worked well as the numbers were relatively controlled by targets. However, in 2011 the government, in all their infinite wisdom wearing rose tinted glasses, took the caps on enrolments away in favour of a "demand driven system", meaning a degree could be filled with an infinite amount of people if they got in. There was a reason for it though, 6 months later they also announced huge cut backs to university funding. So, naturally, what have the uni's done in the last 2 years? Let every tom dick and harry in of course! Many of the older academic staff are worried that courses are being dumbed down and entry limits lowered in an effort to get bums on seats and thus more $$. Im pretty sure last year was a record year for engineering enrolments. Going by the statistics, half of them will make it to graduation, but the end result is still more engineers than what our economy needs. Like the US, we also have a mythical "engineering shortage" that the media and big business like to pedal. The outlook is just downright scary for those in non science fields like law, finance and business, teaching and nursing, which are already at saturation point.
Follow the way of the dodo...