Bishop queries 'anecdotal' poverty study

from The Age

Adam Morton, Higher Education Reporter

Federal Education Minister Julie Bishop has challenged the validity of a survey that found student poverty has worsened dramatically this decade.

In an interview with The Age, Ms Bishop described a report by lobby group Universities Australia - which found nearly one in four undergraduates took out loans last year to cover basic living costs - as "very anecdotal", and questioned whether students answered truthfully.

"I know what I would have said if I were a student," she said.

"I just think that we can do better in terms of getting an evidence-based report. But I accept as a matter of principle that we've got to focus on students' ability to study at university."

Ms Bishop's criticism preceded Universities Australia releasing the final report on its survey of nearly 19,000 students' finances.

It found the plight of indigenous students was particularly bad, with one in four sometimes unable to afford food and other necessities, compared with one in eight non-indigenous students.

Other findings include:

? One in five full-time postgraduate students also worked full-time.

? 41.8 per cent of full-time undergraduates and 32.4 per cent of full-time postgraduate students had annual incomes of less than $10,000.

? Female students were more likely than males to have a budget deficit, no emergency savings or be financially dependent on someone else.

An earlier report on the same survey found nearly a quarter of students resorted to taking out credit cards or repayable family loans to continue studying last year, up from one in 10 in 2000. The average loan was $4720.

The rising student debt coincided with the proportion of students qualifying for welfare through Youth Allowance and Austudy slipping from 42 per cent to 35 per cent. The survey was carried out before the Federal Government pledged $222 million for student support schemes in the May budget, including making Youth Allowance available to master's students.

But the budget brought no change to student welfare payments and strict means tests, which commentators argue are too low and can cut into payments even when students or their parents earn relatively little.

Ms Bishop acknowledged there were anomalies between student income payment levels and other forms of welfare, such as the dole.

She said means test thresholds and payment levels were "always under review", but changes could cost hundreds of millions of dollars.

Universities Australia said it would launch on election campaign calling on the Government to lower the age of independence for Youth Allowance - at which point payments are determined by the students' income rather than their parents' - from 25 to 18.

It also called for scholarships not to be considered accessible income.

Universities Australia survey spokesman Professor Alan Robson conceded changing the student welfare system would be expensive, but said ensuring students from all backgrounds could go to university and concentrate on study was more important.

Opposition education spokesman Stephen Smith said the Labor Party would help struggling students by reintroducing the Voluntary Student Supplement Scheme, allowing repayable loans of up to $7000 a year to some students.

National Union of Students president Michael Nguyen said the report showed how hard it was for students not from wealthy families to go to university.

"Young people need support to make a decision to increase their skills," he said.