By Dave Rodda
In 1988, having been unemployed for more than a year, I decided that, rather than remain on unemployment benefit forever, I should enrol in a university course. Although this would not necessarily be a magic solution, it would at least occupy my mind while, ideally, opening new employment opportunities. In any case, it was something I had always wanted to do.
I completed one semester part time and re-enrolled for full-time external studies in 1989. This was the first year of the Higher Education Contributions Scheme (HECS), marking yet another retreat by the ALP from one of its central policies — free education for all. I continued as a full-time student until July 1990, when I joined the Australian public service.
Shortly after starting work (my first full-time job in more than three years), I applied for assistance under the public service Studybank scheme. The objective of this scheme, I assume, is to assist public servants financially to improve their qualifications and career prospects. It also allows time off for attendance at lectures and exam leave.
This scheme appeared to be the end of many of my financial problems, because I calculated that when I was eventually required to repay HECS, about 60% would be refunded by my department.
Eighteen months or so later, I changed departments and again applied for Studybank, which I thought would be transferable. Unfortunately, this was not the case. Last July my salary exceeded the princely sum of $509 per week, the figure at which HECS repayments begin.
It was a considerable shock when I was told recently that the only way to be reimbursed would be to pay off the whole debt first. This would mean taking out a credit card loan — the only option open to me at this stage — with interest rates of up to 20% likely. So much for Studybank!
To add insult to injury, when I asked my union, the Community and Public Sector Union, to investigate this, they were told by my former department that because I had left, no reimbursement would be payable. This means that I will receive refunds for only 25% of my study expenses, and only when I have paid the amount owing (now around $7000) in full. I calculate this to be about the time of my retirement!
Meanwhile, "indexation", a euphemism for compound interest, is applied to the accumulated debt, further increasing my liability with the passing of time.
I was also told that the Studybank scheme is subject to "agency bargaining outcomes", which means that conditions vary across the Commonwealth government. So what began as a scheme to assist public servants to improve their qualifications is now being eroded (like so many of our former conditions of service) and is largely useless to those who cannot afford to pay their fees up front.
All I can say is "thank you" to the Hawke/Keating government, which has been moving progressively towards user pays not only in education but in all areas of government services. It is just another step along the economic rationalist path by a government which believes education is a cost, not an investment in our future.