University funding cuts not to harm Australia as "int'l study destination": gov't

Australian Federal Education Minister Simon Birmingham has defended his government's plan to cut university funding and raise fees, saying that it will not affect Australia's status as a desirable destination for international students.

Under the proposed changes, announced late on Monday evening, university students studying the average four-year degree would be slugged an additional 2,000 to 3,600 AU dollars (1,500 to 2,715 U.S. dollars), while the overall amount cut from university funding would total 2.8 billion AU dollars (2.11 billion U.S dollars).

Also, once students have graduated and are earning a full-time wage, they will be required to pay back the loan once they are earning 42,000 AU dollars (32,700 U.S. dollars) - down from the current threshold of 55,000 AU dollars (41,500 U.S. dollars). This will mean more Australians are paying back their higher education loans, freeing up more money for the government to spend elsewhere.

Following the announcement, some Australian university vice-chancellors raised concerns that the changes would scare off prospective international students. Monash University Vice-Chancellor Margaret Gardner told the minister that it would be harder to sell the "quality" of its education in the wake of funding cuts.

Despite the concerns, Birmingham said the measures would benefit universities by boosting their long-term sustainability.

"We believe they can absorb such an efficiency dividend without it having any detrimental impact on (universities') bottom lines or teaching or learning," Birmingham said in comments published in Tuesday's newspapers.

He added that the changes would mostly affect Australian citizens, and that Australia's reputation as a desirable destination for international students would remain untouched.

"International education is Australia's third largest export, valued at 16.6 billion U.S. dollars and supporting around 130,000 jobs. We must nurture and grow our reputation for providing quality education to Australians and to the world," Birmingham said.

"We must continue to be a beacon for the best and brightest from around the globe - whether they are PhDs, post docs, academic staff or undergraduate students. We welcome and want to partner with the best in the world."

The changes will be officially floated in the federal budget, to be released on May 9, but will require the support of the crossbench to pass through Parliament. Endit