NEW South Wales Teachers Federation (NSWTF) TAFE organiser Kathy Nicholson has spoken out against the state government’s Smart and Skilled reforms that could see HECs style study loans introduced for TAFE New England (TNE) students studying in 2015.
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NSWTF announced that TNE had already lost 30 teaching positions as a result of job cuts and Ms Nicholson said the regional training organisation could expect to lose more jobs before Christmas.
“TAFE are having to get out of some courses because they can’t afford to deliver them based on what the NSW government will fund them at,” she said.
“The NSW Baird government de-funded all fine arts programs in 2012, resulting in us losing every fine arts teacher out of TAFE in New England.”
Ms Nicholson said the rollout of Smart and Skilled reforms were closely aligned with the previous Victorian government’s training institution reforms and boded ill for TNE.
“It’s not good news for TAFE,” she said.
“In Victoria exactly this model led to TAFE now only having 27 per cent of market share and ultimately changed the government in Victoria.”
TNE institute director Peter Heilbuth said TNE had positioned itself very well to continue to provide its services in 2015 and said there was no connection between the Victorian reform model and that proposed for NSW.
“The Smart and Skilled reforms in New South Wales were not modelled on the reforms in Victoria. The Victorian experience was carefully considered when developing Smart and Skilled,” he said.
“Smart and Skilled has been designed to provide the skills needed to support the NSW economy. Eligible students will be entitled to subsidised training up to and including Certificate III in qualifications on the NSW Skills List.”
Under the proposed Smart and Skilled reforms, from 2015 course fees will be calculated for the sought-after qualification as a whole. Government subsidies will be available for eligible students and VET FEE-HELP loans available for applicants seeking Diploma or Advanced Diploma qualifications.
“This means students will know upfront the cost of the qualification,” Mr Heilbuth said.
Ms Nicholson said the introduction of study loans was bad news for students.
“These loans are really problematic because, first of all, what other loan has a 20 per cent administrative fee?” she said.
Under the FEE-HELP loan structure, students will prospectively begin repaying the loan at tax time, with provision for consumer price indexation, once they begin earning above the compulsory repayment threshold. A 20 per cent loan fee will apply for full fee-paying students.
“There is no interest on VET FEE-HELP loans. The Commonwealth indexes HELP debts on June 1 each year in line with CPI,” Mr Heilbuth said.
“All Aboriginal students will be exempt from paying fees for training. Students with a disability and their dependents will not pay a fee for the first subsidised qualification they commence in a calendar year. Fee concessions will be available for students who are Commonwealth welfare recipients and their dependents in government subsidised training.”
The move to include Commonwealth VET FEE-HELP loans for students seeking higher qualifications has attracted some criticism from government opposition and NSWTF.
“We are anticipating almost an inability to be able to provide education for those in our community who are the most marginalised,” Ms Nicholson said.
Member for Northern Tablelands Adam Marshall said the reformed government subsidies and the FEE-HELP study loan system was designed to assist disadvantaged students to access tertiary qualifications.
“It operates similar to the old HECs system at university for students who qualify, and there are a number of eligibility criteria, but largely it is about helping disadvantaged students or students who may not have completed their schooling or certainly haven’t previously had a tertiary qualification,” he said.
“The assistance is there for people who either have no tertiary qualifications, from a low socio-economic background, or are of Aboriginal or Torres Strait Islander descent.
“So yes there still can be assistance provided for a number of courses, but it does get increasingly difficult as you get more and more qualified because the idea of the assistance is that it is there for people who can’t afford it (study) or don’t have a qualification.”
Mr Heilbuth said TNE had been fortunate in the reform rollout.
“Under Smart and Skilled we received most of the areas of funding we requested. So, it is business as usual for courses within our institute,” he said.
“We will be adapting to the needs of industry, we will be delivering trade qualifications, we will be partnering with schools and we will tailor our activities to meet the needs of our youth, the unemployed, women, people with a disability, Aboriginal people and people from non-English speaking background, intending to enter the workforce.
“Like every business our fees and our fee structures are changing. To support our changing fee structure, TAFE New England has a range of subsidised fee rates on offer, and on current analysis, these subsidised fees will be available to approximately 70 per cent of students” Mr Heilbuth said.