Student Loans

Melbourne University Private venture

Sblogger2@gmail.com (Sblogger2) — Sun, 16 Aug 2009 06:30:00 -0700

The late 1990s and early years of the new millennium therefore witnessed a collection of financial, managerial and academic failures across the university system– the most notable of these being the Melbourne University Private venture, which saw hundreds of millions of dollars invested in non-productive assets, in search of a ‘Harvard style’ private university that never delivered on planned outcomes. This was detailed in a book ("Off Course") written by former Victorian State Premier John Cain and co-author John Hewitt who explored problems with governance at the University of Melbourne, arguably the nation's most prestigious university.

The Melbourne Age newspaper reported in regard to the Melbourne University Private affair, and John Cain's book that:
"It (the Cain/Hewitt book) argues that the University of Melbourne has put the raising of money from private sources above its duty as a public university, that its most strenuous efforts in this endeavour have failed, that it refuses to admit the failures and reports them inadequately."

A number of universities and research centres/institutes were also plagued with financial and academic scandals arising from poor governance; lack of management experience; lack of strategic planning capability and direction. Many of these were reported in the Australian media, including:

The ABC's 2000 4 Corners program which looked at the public float of the Melbourne IT company from the University of Melbourne
The ABC's 2003 4 Corners program which looked at issues of academic impropriety at the University of New South Wales
The ABC's 2005 Latelineprogram which examined inappropriate conduct in the Cooperative Research Centre for Photonics

One of the underlying governance problems for Australian Universities is that, as a legacy of their establishment, legislative control of universities resides with the states, but funding is derived from the Australian Federal Government. This means that whenever there is no consensus between state and Federal governments in regard to directions, universities are subsequently left in an ambivalent position with potentially conflicting objectives. Moreover, despite having a Federal funding system, the legislative process for universities can vary from state to state and hence, nationally, there is no uniformity of governance.

University fund raising schemes – international students

Sblogger2@gmail.com (Sblogger2) — Sun, 16 Aug 2009 06:27:00 -0700

The Australian University system is the international student ‘fee-paying’ market – in the order of $5,000,000,000 per annum by 2004. Australia’s share of the international student market is disproportionately high by international standards.

The Australian Department of Foreign Affairs and Trade estimated that the Australian higher education sector accounted for some 12% of all education in countries with an English speaking base in 2004. This extraordinary success was essentially the product of three factors:

Early penetration of Australian universities into the emerging Asian market for education
The good international reputation established by the traditional universities
Opportunistic fortune

The opportunistic elements of the success led to an over-confidence in fast-money schemes based upon fee-paying international students. It also led to numerous accusations of declining educational standards in Australian universities and a culture of ‘fee-for-degree’.

The Australian Broadcasting Commission's (ABC's) flagship current affairs television program '4 Corners' highlighted this problem in 2005, stating:
"And as foreign students have flooded in, universities have become mired in allegations about falling standards, soft marking, plagiarism and backdoor immigration..."

This was particularly evident in postgraduate coursework programs (particularly Master’s coursework degrees) which had significant appeal to the burgeoning Asian markets.

Governance

With a larger proportion of university turnover derived from non-Government funds, the role of university vice chancellors moved from one of academic administration to strategic management. However, university governance structures remained largely unchanged from their 19th Century origins. All Australian universities have a governance system composed of a vice-chancellor (chief executive officer); chancellor (non-executive head) and university council (governing body). However, unlike a corporate entity board, the university council members have neither financial nor vested specific interests in the performance of the organization (although the state government is represented in each university council, representing the state government legislative role in the system).

History

Sblogger2@gmail.com (Sblogger2) — Thu, 23 Apr 2009 02:12:00 -0700

To World War II

The first university established in Australia was the University of Sydney in 1850, followed in 1853 by the University of Melbourne. Prior to federation in 1901 two more universities were established: University of Adelaide (1874), University of Tasmania (1890). At the time of federation, Australia's population was 3,788,100 and there were fewer than 2,652 university students. Two other universities were established soon after federation: University of Queensland (1909) and the University of Western Australia (1911). All of these universities were controlled by State governments and were largely modeled on the traditional British university system and adopted both architectural and educational features in line with the (then) strongly influential ‘mother’ country. In his paper Higher Education in Australia: Structure, Policy and DebateJim Breem observed that in 1914 only 3,300 students (or 0.1% of the Australian population) were enrolled in Universities. In 1920 the Australian Vice-Chancellors’ Committee (AVCC) was formed to represent the interests of these six universities.

The ‘non-university’ institutions originally issued only trade/technical certificates, diplomas and professional Bachelor’s degrees. Although universities were differentiated from technical colleges and institutes of technology through their participation in research, Australian universities were initially not established with research as a significant component of their overall activities. For this reason, the Australian Government established the Commonwealth Scientific and Industrial Research Organization (CSIRO) in 1926 as a backbone for Australian scientific research. The CSIRO still exists today as a legacy, despite the fact that it essentially duplicates the role now undertaken by Australian universities.

Two university colleges and no new universities were established before World War II. On the eve of the War, Australia's population reached seven million. The university participation level was relatively low. Australia had six universities and two university colleges with combined student numbers of 14,236. 10,354 were degree students (including only 81 higher degree students) and almost 4,000 sub-degree or non-award students.

World War II to 1972
In 1942, the Universities Commission was created to regulate university enrolments and the implementation of the Commonwealth Reconstruction Training Scheme (CRTS).

After the war, in recognition of the increased demand for teachers for the "baby boom" generation and the importance of higher education in national economic growth, the Commonwealth Government took an increased role in the financing of higher education from the States. In 1946 the Australian National University was created by an Act of Federal Parliament as a national research only institution (research and postgraduate research training for national purposes). By 1948 there were 32,000 students enrolled, under the impetus of CRTS.

In 1949 the University of New South Wales was established.

During the 1950s enrollments increased by 30,000 and participation rates doubled.

In 1950 the Mills Committee Inquiry into university finances, focusing on short-term rather than long-term issues, resulted in the State Grants (Universities) Act 1951 being enacted (retrospective to 1 July 1950). It was a short-term scheme under which the Commonwealth contributed one quarter of the recurrent costs of "State" universities.

In 1954 the University of New England was established. In that year, Prime Minister the Robert Menzies established the Committee on Australian Universities. The Murray Committee Inquiry of 1957 found that financial stringency was the root cause of the shortcomings across universities: short staffing, poor infrastructure, high failure rates, weak honours and postgraduate schools. It also accepted the financial recommendations in full which led to increased funds to the sector and establishment of Australian Universities Commission (AUC) and that the Commonwealth Government should accepted greater responsibility for the States’ universities.

In 1958 Monash University was established. States Grants (Universities) Act 1958 allocated funding to States for capital and recurrent expenditure in universities for the triennial 1958 to 1960. In 1959 the Australian Universities Commission Act 1959 established the AUC as a statutory body to advise the Commonwealth Government on university matters. Between 1958 and 1960 there was more than a 13% annual increase in university enrollments. By 1960 there were 53,000 students in ten universities. There was a spate of universities established in the 1960s and 70s: Macquarie University (1964), La Trobe University (1964), the University of Newcastle (1965), Flinders University (1966), James Cook University (1970), Griffith University (1971), Deakin University (1974), Murdoch University (1975), University of Wollongong (1975).

By 1960, the number of students enrolled in Australian Universities had reached 53,000. By 1975 there were 148,000 students in 19 universities.

After 1972

Until 1973 university tuition was funded either through Commonwealth scholarships which were based on merit or through fees. Tertiary education in Australia was structured into three sectors:

Universities
Institutes of Technology (a hybrid between a university and a technical college).
Technical Colleges.

During the early 1970s, there was a significant push to make tertiary education in Australia more accessible to working and middle class Australians. In 1973, the Whitlam Labor Government abolished university fees. This decision did not greatly change the socio-economic backgrounds of students attending universities because only 20 to 25 percent of students paid fees as most had Commonwealth scholarships. Another reason for the lack of change was because low high school retention rates had resulted in many young people from disadvantaged backgrounds not completing secondary education and therefore never having the opportunity to choose to attend university. Nevertheless there was an increase in the university participation rate.

In 1974 the Commonwealth assumed full responsibility for funding higher education (universities and CAEs) and established the Commonwealth Tertiary Education Commission (CTEC) which had an advisory role and responsibility for allocating government funding among universities. But in 1975, in the context of federal political crisis and economic recession, triennial funding of universities was suspended. Demand remained with growth directed to CAEs and State-controlled TAFE colleges.

1980s

By the mid 1980s, however, it became the consensus of both major parties that the concept of ‘free’ tertiary education in Australia was untenable due to the increasing participation rate.

Ironically, a subsequent Labor Government (the Bob Hawke/Paul Keating Government) was responsible for gradually re-introducing fees for University study. In a relatively innovative move, however, the method by which fees were re-introduced proved to be a system accepted by both Federal political parties and consequently is still in place today. The system is known as the Higher Education Contribution Scheme (HECS) and enables students to defer payment of fees until after they commence professional employment, and after their income exceeds a threshold level – at that point, the fees are automatically deducted through income tax. Students also have the option of paying up-front for their education and receiving a discount commensurate with the interest rate saving associated with non-deferral.

By the late 1980s, the Australian tertiary education system was still a three-tier system, composed of:

Traditional universities (largely the original group plus a few 20th Century additions, such as Monash University)
A collection of institutes of technology (such as the Royal Melbourne Institute of Technology (RMIT))
A collection of colleges of Technical and Further Education (TAFE).

However, by this point, the roles of the universities, institutes of technology and the CSIRO had also become blurred. Institutes of technology had moved from their traditional role of undergraduate teaching and industry-consulting towards conducting pure and applied research – they also had the ability to award degrees through to Doctor of Philosophy (PhD) level.

For a number of reasons, including clarifying the role of institutes of technology, the Federal Minister for Education of the time (John Dawkins) created the unified national system, which compressed the former three-tier tertiary education system into a two-tier system. This required a number of amalgamations and mergers between smaller tertiary institutions, and the option for institutes of technology to become universities. As a result of these reforms, institutes of technology disappeared and were replaced by a collection of new universities. By the early 1990s, the two-tier tertiary education was in place in Australia – university education and Technical and Further Education (TAFE). By the early years of the new millennium, even TAFE colleges were permitted to offer degrees up to Bachelor’s level.

1990s

For the most part, up until the 1990s, the traditional Australian universities had focused upon pure/fundamental/basic research rather than industry/applied research – a proportion of which had been well supported by the CSIRO which had been set up for this function. Australians had performed well internationally in pure research, having scored almost a dozen Nobel Prizes as a result of their participation in pure research.

In the 1990s, the Hawke/Keating Federal Government sought to redress the shortcoming in applied research by creating a cultural shift in the national research profile. This was achieved by introducing university scholarships and research grants for postgraduate research in collaboration with industry, and by introducing a national system of Cooperative Research Centres (CRCs). These new centres were focused on a narrow band of research themes (e.g., photonics, cast metals, etc.) and were intended to foster cooperation between universities and industry. A typical CRC would be composed of a number of industry partners, university partners and CSIRO. Each CRC would be funded by the Federal Government for an initial period of several years. The total budget of a CRC, composed of the Federal Government monies combined with industry and university funds, was used to fund industry-driven projects with a high potential for commercialization. It was perceived that this would lead to CRCs becoming self-sustaining (self funding) entities in the long-term, although this has not eventuated. Most Australian universities have some involvement as partners in CRCs, and CSIRO is also significantly represented across the spectrum of these centres. This has led to a further blurring of the role of CSIRO and how it fits in with research in Australian universities.

2000s

The transition from a three-tier tertiary education system to a two-tier system was not altogether successful. Fundamentally, the problem with moving from eight research intensive traditional universities to a collection of nearly 40 new/traditional universities was that there were insufficient high-calibre research academics to sustain the new structure- previously, academics at institutes of technology had focused on teaching rather than research. Moreover, there was insufficient Federal research funding to sustain almost 40 universities undertaking research at an international level, when a similar level of funding had previously only sustained eight.

By 2006, it became apparent that the long term problem for the unified national system was that newer universities could not build up critical mass in their nominated research areas- at the same time, their increase in research level deprived traditional universities of high calibre research-oriented academics. These issues were highlighted in the Melbourne Institute Discipline Ratings for Australian Universities published in 2006 (discussed below). The money that was available, was spread across all universities and even the traditional universities had a diminished capacity to maintain critical mass. The Melbourne Institute figures, based upon Government (DEST) data and publications citations from Thomson Scientificrevealed that many of the newer universities were scoring "zeros" (on a scale of 0 - 100) in their chosen research fields (i.e., were unable to achieve the threshold level of activity required).

Criticism

In the 1990s, during the early years of the unified national system, the solution to future sustainability, as perceived by Australia’s (then) vice chancellors, was to get more money into the system, rather than to rationalize the system itself. The Australian Vice Chancellors Committee argued on a number of occasions about the level of funding provided to Australian Universities relative to those in other OECD countries.

Another problem with the unified national system was that the major source of university funding (the Federal Government, through the Department of Education Science and Training) was performance-based (calculated via a performance formula) and, because the total funding was fixed, represented a zero-sum-game. In other words (arithmetically), if all universities simultaneously boosted their performance by expending more money then, in practice, they were financially disadvantaged. If all universities simultaneously decreased their performance by reducing their expenditure on staffing then, in practice, they were all potentially in a better financial position.

Classification of tertiary qualifications

Sblogger2@gmail.com (Sblogger2) — Thu, 23 Apr 2009 02:03:00 -0700

In Australia, the classification of tertiary qualifications is governed in part by the Australian Qualifications Framework (AQF), which attempts to integrate into a single classification all levels of tertiary education (both vocational and higher education), from trade certificates to higher doctorates.

However, as Australian universities (and a few similar higher education institutions) largely regulate their own courses, the primary usage of AQF is for vocational education. However in recent years there have been some informal moves towards standardization between higher education institutions.

In Australia, higher education awards are classified as follows:

Certificate, Diploma and Associate Degrees, which take 1-2 years to complete, and consist primarily of coursework. These are primarily offered by TAFEs and other institutions as vocational training. Universities tend mainly to award Certificates and Diplomas as adjuncts to another degree, e.g. many Australian school teachers have completed a Bachelor of Arts or Bachelor of Science with a Diploma of Education (DipEd). They are also awarded at the graduate level, in which case they are called Graduate Certificate or Graduate Diploma (or sometimes Postgraduate Certificate and Postgraduate Diploma), and consist of similar material to a Masters by Coursework, but do not go for as long. The distinction between Graduate and Postgraduate Certificates and Diplomas is somewhat arbitrary and dependent on the institution offering them.

Bachelors degrees, generally the first university degree undertaken, which take 3-4 years to complete, and consist primarily of coursework. Bachelors degrees are sometimes awarded with honours to the best-performing students.

In some courses, honours is awarded on the basis of performance throughout the course (usually in 4yr+ courses), but normally honours consists of undertaking a year of research (e.g. a short thesis or Masters by Research). If honours is undertaken as an extra year, it is known as an honours degree rather than a degree with honours. Generally, one must be invited by the university to do Honours as an additional year of study, as opposed to being something a student can apply for and it is often only offered to the highest ranking students of that year group.

Honours may be divided into First Class, Second Class (normally divided into Division I and Division II), and Third Class. This is roughly equivalent to the American classification of summa cum laude, magna cum laude, and cum laude. Individuals who do not attempt honours, or who fail their honours course, are awarded a degree with a grade of Pass.

Masters degrees, which are undertaken after the completion of one or more Bachelors degrees. Masters degrees deal with a subject at a more advanced level than Bachelors degrees, and can consist either of research, coursework, or a mixture of the two.

Doctorates, most famously Doctor of Philosophy (Ph.D.), which are undertaken after an Honours Bachelors or Masters degree, by an original research project resulting in a thesis or dissertation. Admission to candidature for a PhD generally requires either a Bachelor's degree with good honours (First Class or Second Class Division I), or a Masters degree with a research component.

In many cases a student with only a Pass Bachelor's degree can enroll in a Masters program and then transfer to a PhD. Australian PhDs do not tend to take as long as American or British ones, and consist of less coursework than most American PhDs; however this is contrasted by Australian PhDs often being more specific in focus than their American or British counterparts. There are also professional doctorates which consist of advanced coursework and a substantial project in an area such as education (DEd). There is no concept of a "first-professional doctorate" like those awarded in the United States.

Higher Doctorates, such as Doctor of Science (DSc) or Doctor of Letters (DLitt), which are awarded on the basis of a record of original research or of publications, over many years (often at least 10).

Australian Universities tend to award more named degrees than institutions in some other countries. Most Australian universities offer several different named degrees per a faculty. This is primarily for marketing purposes. Universities often try to outdo each other by offering the only degree titled with a popular major.

By contrast, at an undergraduate level at Oxford University, almost all students complete a Bachelor of Arts (B.A.), even if they are studying areas such as Chemistry or Economics, whereas at most Australian institutions only students choosing to concentrate in the humanities would be awarded a B.A. However, although there is a large proliferation at the level of Bachelors and Masters, at the Doctorate and Higher Doctorate level most institutions only have four or five degrees in all, and almost all Doctorates are PhDs.

Unlike American institutions, where most medical doctors or lawyers (known as solicitors in Australia) will graduate with an M.D. or J.D., medical doctors and solicitors in Australia generally only graduate with Bachelor's degrees. In Australia, a degree of Doctor is only awarded after original research or honoris causa, although by custom medical doctors are permitted to assume that title without having completed a doctorate.

In the case of medical doctors, the most common award is M.B.B.S., the double degree of Bachelor of Medicine and Bachelor of Surgery (this is similar to the case in Britain). The most common award for lawyers is LL.B. or BLaws (which are both abbreviations, one Latin and the other English, for Bachelor of Laws).

Traditionally in Australia, medical degrees were commenced immediately after secondary education, unlike in the United States where student generally complete an undergraduate degree first before going to medical school. However, some universities have introduced graduate entry only degrees in medicine, but these are still classified as Bachelors degrees.

Law is commonly studied as a combined degree, such as with Arts or Science (BA/LLB, BSc/LLB), with only a small number of places available for a 'straight' law degree. The large number of combined courses enables students to develop skills in a diverse range of areas. Another common combination is Commerce and Law, which opens up many positions in business, commerce and industry. The Law degree in Australia is seeing fewer graduates going on to become practicing solicitors; instead many graduates take work in private industry or government sectors.

Australian Bachelors degrees are occasionally only 3 years in duration, however most are like the four year degrees found in the United States. The length of the degree usually depends on the field of study; for example engineering usually takes four years while medicine takes six. Combined degrees are also available and usually add an extra year of study. Australian universities tend to have less of an emphasis on a liberal education than many universities in the US, which is reflected in the shorter length of Australian degrees.

Associate's degree has recently been introduced. These generally take two years to complete and can be seen as equivalent to the Associate's degree in the US and the Foundation Degree in the UK. They are also equivalent to the older Australian qualifications the Diploma and the Advanced Diploma.

Prior to the 1980s health science disciplines were being established by Colleges of Advanced Education, who were forbidden to award "degrees". Courses were conducted and classified as a "Diploma of Applied Science in (discipline)". These courses had considerable content requirements, some having over 32 contact hours per week over a three year period. These "diplomas" have been somewhat devalued by the newer naming conventions, as some diploma courses conducted nowadays may only consist of attending 12 training days for a total of less than 72 contact hours. However, many former "diplomats" have either converted or upgraded their DipAppScis to the corresponding Bachelor degree, or have undertaken further post graduate study.

Australian universities

Sblogger2@gmail.com (Sblogger2) — Thu, 23 Apr 2009 01:58:00 -0700

There were 39 recognised universities in Australia in 2007, of which 37 were public institutions and 2 are private. For a list of all universities in the Australian university system, both public and private, see the article List of universities in Australia.

These universities are represented through the national universities' lobbying body Universities Australia (previously called Australian Vice-Chancellors' Committee). Eight universities in the list have grouped themselves together, in recognition of their perceived status and/or history, and classify themselves as the ‘Group of Eight (Australian universities)’ or ‘G8’. Other university networks also exist with less prominence (e.g., the Australian Technology Network of Universities; the Innovative Research Universities - Australia group).

Allocation of responsibilities

The Commonwealth has the primary responsibility for public funding of higher education.

Commonwealth funding support for higher education is provided largely through:

the Commonwealth Grant Scheme which provides for a specified number of Commonwealth supported places each year;
the Higher Education Loan Programme (HELP) arrangements providing financial assistance to students;
the Commonwealth Scholarships; and
a range of grants for specific purposes including quality, learning and teaching, research and research training programmes.

The Department of Education, Science and Training (DEST) administers Commonwealth funding and develops and administers higher education policy and programs.

Decision-making, regulation and governance for higher education are shared among the Commonwealth, the State and Territory Governments and the institutions themselves.

By definition within Australia, universities are self-accrediting institutions and each university has its own establishment legislation (generally State and Territory legislation) and receive the vast majority of their public funding from the Australian Government, through the Higher Education Support Act 2003.

Some aspects of higher education are the responsibility of States and Territories. In particular, most universities are established or recognised under State and Territory legislation.

The Australian National University, the Australian Film, Television and Radio School and the Australian Maritime College are established under Commonwealth legislation.

The Australian Catholic University is established under corporations law. It has establishment Acts in New South Wales and Victoria.

Many private providers are also established under corporation’s law.

States and Territories are also responsible for accrediting non-self-accrediting higher education providers.

As self-accrediting institutions, Australia’s universities have a reasonably high level of autonomy to operate within the legislative requirements associated with their Australian Government funding.

The Australian Qualifications Framework (AQF) provides descriptors for qualifications accredited through the higher education sector, as well as those accredited by the vocational and technical education sector and the schools sector. All accredited higher education providers are listed on the AQF register.

Tertiary education in Australia

Sblogger2@gmail.com (Sblogger2) — Thu, 23 Apr 2009 01:52:00 -0700

Tertiary or higher education in Australia is made up of universities and other higher education institutions (called higher education providers).

A higher education provider is a body that is established or recognized by or under the law of the Commonwealth, or a State or Territory. The provider has to be approved by the Australian Government before it can receive grants or its students can receive assistance from the Australian Government under the Higher Education Support Act 2003 (HESA). Providers are subject to quality and accountability requirements.

A higher education provider is either a:

university
self-accrediting provider, or
Non self-accrediting provider.

In 2007, the Australian higher education system consisted of:

39 universities of which 37 are public institutions and 2 are private;
1 Australian branch of an overseas university;
4 other self-accrediting higher education institutions; and
Non-self-accrediting higher education providers accredited by State and Territory authorities, numbering more than 150 as listed on State and Territory registers. These include several that are registered in more than one State and Territory.

The non-self-accrediting higher education providers form a very diverse group of specialised, mainly private, providers that range in size and include theological colleges and other providers that offer courses in areas such as business, information technology, natural therapies, hospitality, health, law and accounting.