‘Universal fee’ proposed for all student loans

The federal government could save $700 million a year by introducing a 15 per cent loan fee for all tertiary student loans, an independent Melbourne policy think-tank says.

The Grattan Institute says the universal fee would replace the existing system in which full-fee vocational education and undergraduate students pay loan fees of 20 and 25 per cent, respectively.

The 15 per cent fee would apply to postgraduate and government-supported students, who currently are not charged loan fees.