Arte-non-Vi

Tag: HECS

  • HECS and TAFE

    Structurally, this has been coming for a while and I can see some value in this if it is done correctly. There are dangers however, most notably in setting a price hurdle that will stop many from undertaking the very skills path they need because the risk/reward equation of deferred loans in this sector will be based on a lower average income stream over time than those in degree and higher ed pathways…

    Farah Tomazin in The Age writes:

    TAFE students could soon pay for their courses through a HECS-style loan scheme under radical plans by the Brumby Government to tackle the skills crisis.

    As part of a massive shake-up of vocational education and training, the State Government is considering whether to introduce an income-contingent loan scheme similar to the HECS system offered at universities.

    Link: HECS-style system flagged for TAFE students.

  • HECS for TAFE ?

    Merit, yes… Although assumptions about future returns are predicated on current labour-force structures? The debt/liability is permanent!  Jobs… not so much?

    HECS for TAFE: the case for extending income contingent loans.

    In this paper, a case is argued for introducing an income contingent loan to the VET sector. The economic underpinning is similar to the Higher Education Scheme (HECS) which is identified as a useful guide. It is established that there is significant returns from a VET qualification.

    For example, diplomas and associated diplomas are associated with rates of return of around 8-10 per cent per annum for men, and about 10-14 per cent per annum for women. These statistics are comparable to those investments that are usually cited for undergraduate higher education degrees. [edna education news]