HECS often takes the spotlight when the cost of university and TAFE is discussed, however, people forget to take into account the other, hidden costs when they plan for higher education. Futurity Investment Group latest research calculated the true costs of pursuing higher education in Australia. The research saw 2,200 university and 1,370 TAFE and RTO students surveyed and found many students will spend more than $180,000 to attain a degree or diploma.

The total Cost of University and TAFE summary

 

Given most university degrees last three years and diplomas at TAFE and training colleges regularly exceed two years, the total cost can add up to tens of thousands of dollars, which students need to factor in when considering their study budget.

 

Ancillary expenses really add up


University students told us they incur around $8,108 per year in expenses as a result of studying. This is on top of their course fees.

 

This includes costs such as student union fees ($1,757), transport to and from campus ($749), a laptop or computer ($1,367) and stationery and supplies ($566). In addition, students who undertake a placement as part of their studies and who do not qualify for free placements, reported spending just under $2,000 as a result of the placement.

 

Students studying at a TAFE or private training colleges reported slightly lower ancillary costs of around $7,435 per year.

 

Student union fees are higher for VET students ($2,218) and these students reported additional costs including equipment for specialised units of study such as PPE ($786). Placement costs were slightly lower when compared to university students, coming in at $1,512 while stationery and supplies was similar at $596.  

 

How do students pay for study?

 

It is not always easy, most students are reliant on financial support to help pay for education, whether that’s government support or informal support from family. The research found three in four (75%) university students are accessing government funded programs such as HECS/HELP compared to 40% of VET students.

 

Other common ways to pay include: parents are providing support (33% university students and 27% VET) and drawing on personal savings (31% university and 27% VET students). Concerningly 9% of university students and 10% of VET students said they had taken out a personal loan to help pay for the total cost of their higher education.

Students value education

 

Despite these costs and the challenges students face in paying for the total cost of a tertiary education, the research found students value their studies. Four in five university students (82%) and an even greater number of VET students (87%) believe their current course is worth the costs involved.

 

Have a plan to save for education

Quality education comes at a cost. But it’s also one parents and grandparents can plan for today, to ensure their child or grandchild has a better tomorrow.

It would be easy to look at the figures in this article and feel a sense of dread or apprehension at how your child or grandchild will be able to pursue higher education and not end up burdened by debt. But as with everything in life, with the right knowledge and guidance, it is possible to afford the education your child or grandchild needs to fulfil their aspirations.

The key is create a solid plan, and to take action.

For more than 50 years, we’ve been helping Australian families to meet the costs of education through our expertly managed savings products including our Education Bond. Our solutions are designed to help parents and grandparents just like you save and accumulate funds for education expenses in a tax-effective way.

Your child’s education will likely be one of the biggest investments you’ll make. It is never too early to understand and prepare for these costs, so you can create the bright future you envisage for your children.

 

Need help planning for the cost of education? Speak with your Financial Adviser about Futurity’s Education Bond range or contact us today.
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