Alan Bond supports Budget cuts to universities

The federal government's proposed changes to tertiary education, outlined in last week's budget, has finally found a supporter in the form of Gold Coast University founder, Alan Bond.

Mr Bond, 76, told the Gold Coast Bulletin that his eponymous university should be used as a business model for high education.

"Bond University has been successful despite going through difficult times," Mr Bond said.

"They also managed to make it work without government support.

"It is a standard that all other universities would love to have."

Under the new federal budget, students at private universities will be better off if the changes are passed thanks to the removal of a 25 percent HELP administration fee, which had previously only be waivered for public university students.

Universities will be able to set their own course fees from 2016 and real interest will be applied to student debts for the first time.

Hardest hit would be students who drop out of university and start out in low-paying jobs or women who delay paying back their debts when they take time off work after having children.

Since the introduction of HECS, interest on student debt has been pegged to inflation – now 2.9 percent.

But now the federal government plans to charge a real rate of interest on student debt – up to six percent.

Mr Bond also praised the Government’s proposal for a 20 percent cut to course funding by 2016.

"The Government now recognises that the user pays in this economy," he said.

"The only way these institutions can continue to prosper is if they adopt the appropriate attitude."

Mr Bond declared bankruptcy in 1992 and served four years in prison for fraud.

Source: Gold Coast Bulletin

Author: Natasha Lee, Approving editor: Simon Black