The Australian university system is operating under an entirely different form of financial aid than America in which students are aware of how much loan money is their "account" before they even start college. Students know how much they are going to be able to use over the course of their college career, which some argue is helping to keep students on track, encourage them to spend their money wisely, and prevent them from taking time off or losing any time messing around with their education. More and more students in America are having to go part time, take a semester or two off, and work another job while possibly taking care of a family member or children. It's becoming increasingly difficult to answer how we are going to increase access to students and how students are supposed to leave with less debt.
Jones suggests that the Australian way of awarding loan money may be the more realistic answer. Students know that when the money in their account runs out, government support is done. The argument is that students have more incentive to complete their degree and get through school in a timely manner. They don't have the ability to stay in school and keep collecting money from the government for loans. Additionally, students don't have to pay back their loans until they reach an income of $45,000 whether that is during their time in school or after they graduate.
I'm definitely not an expert in financial aid, but I am curious how this system affects scholarships. Do students with less money have a chance to receive any sort of need based aid? I wasn't sure how exactly the government decides how students receive their financial awards and what is taken into account when they are given their set amount. I am also curious how this affects students who are trying to attain a higher degree. Either way, we are looking for answers in America about how to fix one of the major issues in Higher Education, and this might be a good system to look at.
I appreciate what Australian higher education is modeling for us and the rest of the world--personal accountability.
ReplyDeleteI don't know much about financial aid either (American financial aid, that is), but isn't that a big problem in itself? Why don't I know? Probably because it's extremely complicated, time intensive to investigate, and all of the "fine lines" to digest in the process of understanding the system have little appeal to me. What the Australian system seems to be doing is cutting out the complexity--making it simple and understandable. Along with this, the government is saying, "This is what we can offer you, this is all we can do, and it's your choice to use it wisely."
To me, that is empowering. Additionally, knowing that I can take full advantage of that opportunity in the moment, work towards my career goals, and not have to pay it back until I'm making a decent salary. Unfortunately here, student loan reimbursement keeps many college graduates still floundering on a check-by-check basis. Entry level positions don't pay a ton of money, and families are expensive. Why not reward hard-work and success by allowing individuals to build themselves up, then give back to system that was supportive and patient with them? I'm in favor!
Kelsi, I am not an expert in financial aid either. However, any new system that considers the current economic times and takes into account our diverse students’ characteristics is welcome.
ReplyDeleteI agree that the U.S. federal student aid system is no longer providing the support and the resources our student population needs. I concur with Jones that our student body is now different and its demands vary considerably. Thus, we need to design a financial aid program that focuses on the real needs of our students.
The Australia experience alluded to in the article provides a unique system of student aid that could serve as a guideline for other countries.
It appears to be based on social justice principles as opposed to a neo-liberal state and "commercialization" model of higher education currently in place in the U.S. However, I would be interested in looking at data and evidence of the effectiveness of this system.
Kelsi - thank you for bringing to light a positive solution to such a sticky topic! It is encouraging to hear about other countries who are making financial aid work in a time where everything "money" seems to be a struggle.
ReplyDeleteI love the idea of knowing what a student has available up front, only being able to accept specific loan amounts based on a career path and the payback percentage being based on income. It seems to me that students are much more educated early on about what their loans and money mean and what the implications for high debt could mean.
I'm sure everyone has had conversation about this recently because of everything going on in the U.S. A quick story about why I like the Australian system. I was talking to a student in my office the other day who has a friend who has $100,000+ in student loans and her payments are killing her because she's a struggling actress (aka waitress) in New York. This personal example made this student fond of loan forgiveness programs, etc. that the U.S. government is talking about.
I struggle with this idea because I believe she should've been smarter in choosing where she went to school, the amount of debt she accrued and what that meant for her post-graduation with her career goals. While I'm all about access, I think we each have a personal responsibility to choose a college (and therefore debt range) that is manageable for our personal situation. To me, it's what Kylie said, personal accountability.