Higher Education Contributions Scheme: Theories and Concepts Essay

Introduction

Social theories and policies are part of the Australian education institution. These theories and policies affect individuals differently depending on their social and educational statuses. The government has instituted several initiatives that are aimed at improving the levels and qualities of education within the country. An example of a government initiative is the Higher Education Contributions Scheme (HECS). The HECS was started in 1989 and it sought to increase the intake of degree programs in the country (Chapman 738). The sociological and theoretical policies that apply to the institution of the HECS program touch on several educational theories and philosophies.

For instance, the context of the HECS borrows some aspects from Durkheim, Weber, Marx, and the Frankfurt schools of thought. Furthermore, HECS also bears aspects of globalization and neoliberalism. This essay explores the history and institution of HECS and it relates to several educational theories and concepts. The paper primarily focuses on neoliberalism and globalization among other theories and policies.

History of HECS

The formation and implementation of the HECS is very important to the Australian tertiary education history. The HECS policy implementation took a short time due to the political will of the Hawke Labour Government. The HECS represents one of the most significant changes in the history of Australian tertiary education. Previously, tertiary education in Australia was an individual effort and students had to pay their fees upfront. However, the government sought to address the needs of the students who could not afford to pay their fees upfront. Under the HECS, the government would provide loans to students and collect the money once the credited student started earning enough money.

HECS was a brainchild of the Wran Committee and it encompassed three major government ministries. The main concern for the ministries of employment, education and training, and finance was how to streamline the institution of HECS from the financing stage up to the debt collection stage. Nevertheless, the Wran Committee had to ensure that both the public and the Labour Party would welcome the HECS idea. During the period leading to the formation of the HECS, the labour party was exploring the idea of a government funded University education. On the other hand, the public was in support of the government-funded educational program.

Therefore, the Wran Committee had the challenging task of convincing the public to accept the burden of paying for its tertiary education. To avoid possible public backlash, the committee sought to institute a program that was different from the traditional fees systems. Consequently, HECS is primarily an income-contingent loan system. A student is only due for a loan repayment once he/she attains a certain level of income. The reasoning behind the HECS is that the benefits of the education that the student acquired from the government are undeniable by the time of repayment. The means of collecting the HECS financing was one of the primary concerns of the Wran Committee.

Several measures were put in place before the HECS idea was floated to the public. For instance, as a means of preparing the ground before the implementation of the program a paper titled ‘The Challenge of Higher Education in Australia’ was published. A few months later, a paper titled ‘Higher Education and Policy Discussion Paper’ appeared. The Wran Committee tabled the HECS report in May 1988 and the policy was implemented three months later.

By 1989, HECS was operational across Australia and it was also funded in that year’s budget (Gregory 237). The simplicity and success of HECS implementation was partly due to the straightforwardness of the program. For instance, the only important considerations of the HECS were the amount of fees that was to be credited to an individual, the level of interest to be charged, and the level of income that a student was to earn before he/she could start repaying the loan. Furthermore, the government did not impose any relevant exemptions to the policy. The HECS program triggers loan repayment as soon as a certain income threshold is discovered in an individual. So far, the HECS policy has been functioning well and with minimum hitches. The success of the policy has been due to the effectiveness of the program. For instance, the HECS policy is fair to the students and it enables students to achieve high levels of incomes before seeking repayments.

HECS Personal Influence

As a beneficiary of the HECS, I have a direct connection to the policy. Curretly, I am registered for the HECS and my main qualification is my middle-class status. First, the program enables me to acquire higher education even though I do not have to pay for it at the moment. This HECS element enables me to achieve both my educational and career goals. It is also clear that the quality of education has greatly improved under the HECS. Before the policy came into force in 1989, the Australian government was reeling from the constraints of funding higher education amid a rapidly rising population. Today, my university lectures are filled with students from all socio-economic classes.

Furthermore, all these students receive a homogeneous quality education regardless of their economic abilities. The HECS has opened educational doors for me because it enabled to enrol for the degree program of my choice. My situation is replicated in thousands of students across Australia whose economic handicaps have not impeded their quest for tertiary education. The HECS policy has opened economic and lifestyle doors of opportunity for me and for thousands of students across the country.

HECS and Neoliberalism

Many scholars have forwarded the argument that globalization is ‘dominantly changing our world’ (Marginson 38). Neoliberalism is a general term that addresses capitalism, consumerism, and the inadequacy of the welfare state. Other schools of thought have dismissed neoliberalism as an improvement of the traditional liberalism. Consequently, neoliberalism has been defined as ‘the revival of liberalism’ (****). One of the most common associations of liberalism is with economics. Neoliberalism is closely connected to neoclassical economics that advocate for stringent tax laws and wider tax nets. Regardless of its various definitions, neoliberalism is a dominant term in modern-global economics and politics.

Neoliberalism advocates for privately held resources hence its connection to HECS. According to neoliberalism, the government should not intervene with the free-flow of the economy. For instance, the private educational sector should be allowed to thrive without interruptions and non-capitalist policies. Therefore, the HECS policy is in line with neoliberalism because it seeks to eliminate the possibility of an educational system that is purely funded by the government (Thorsen 189).

Before the HECS policy was implemented, the Labour Party had proposed for a government-funded tertiary education system. Neoliberalism advocates have always been against a system that supports social welfare programs such as government-provided education and Medical care. Deregulation of tertiary education in Australia coincides with neoliberalism’s philosophy of privatisation of public utilities and turning them into private companies. Since the implementation of HECS, the price of university education has gone up by fifteen percent (Keynes 58). Furthermore, private universities have become more vibrant under the HECS policy. The element of neoliberalism in HECS policy is unmistakable. Since HECS was implemented, higher education in Australia has become more capitalistic and the level of government interference has since declined.

HECS and Globalization

Globalization is a commonly used term in the current trade, communications, financial, and economics environment. Under globalization, nationally located enterprises are able to traverse transnational borders. Furthermore, under globalization a product that is specifically tailored for a national can gain acceptance from global consumers. Dillon notes that globalization is “a trade-relation that has existed between countries but one that has lately developed in a larger scale” (Eggins 47). Globalization is mostly used to advocate for policies whose impact traverses geographical borders.

Education is closely related to the concept of globalization as different regions seek to make their educational products appealing to a global audience. For example, Australia considers education as one of the country’s most valuable exports. HECS enabled the government to supply education to a several students within Australia but not to international students. The only reprieve for international students is the fact that since the inception of HECS the government can be able to offer scholarships to foreign students.

Previously, the cost of catering for higher education even for Australian students was too much for the government. However, the government recovers most of these education costs and this increases the availability of educational resources to both domestic and international students. HECS pushes the globalization agenda by making educational affordable to international students. If the concept of globalization is achieved, HECS services could be made available to international students. HECS’ connection to globalization depends on the future directions that will be taken by both policies (Swank 218). For instance, advancement of globalization might help the spread of HECS policy.

HECS and Relevant Theories

Emile Durkheim insists that education is sociologically relevant because it represents “a basis for organic solidarity” (Edwards 48). Therefore, restricting educational resources to a certain socio-economic group perpetuates inequality and social discord. There were two issues facing the implementation of the HECS policy. The first issue surrounded the pricing of a previously free service and the second issue involved making education more universal and increasing the number of individuals seeking tertiary education. The first issue could be contradicting the Emile Durkheim theory of education that supports a government funded education framework.

However, the fact that HECS increases the provision of education to members of all economic classes reconciles the policy with Durkheim’s theory. On the other hand, Max Weber’s believes that governments can easily use an education system to control their subjects. Therefore, government control of education systems should be limited. In addition, Weber recognizes the need for private proprietorships in education. HECS coincides with Weber’s ideology of lesser government control in education systems.

Conclusion

HECS is a policy that has greatly changed the education landscape of Australia. The government instituted the policy to ensure that education becomes available to individuals from all socio-economic groups. The policy has had positive impacts on several people including myself. Furthermore, the policy has aligned itself with neoliberalism agendas and also borrows support from the concept of globalization. Renowned education scholars such as Mark Weber and Emile Durkheim would gladly support the HECS policy as it aligns with their ideologies.

References

Chapman, Bruce. “Conceptual Issues And The Australian Experience With Income Contingent Charges For Higher Education.” The Economic Journal 107.442 (2007): 738-751. Print.

Edwards, Meredith. Social Policy, Public Policy: From Problem to Practice, Sydney, Australia: Allen and Unwin. 2001. Print.

Eggins, Heather. Globalization and reform in higher education, New York, NY: McGraw-Hill International, 2003. Print.

Gregory, Robert George. “Musing and Memories on the Introduction of HECS and Where to Next on Income Contingent Loans.” Australian Journal of Labour Economics 12.2 (2009): 237. Print.

Keynes, Maynard. The General Theory of Employment, Interest, and Money, London, United Kingdom: Macmillan. 2006. Print.

Marginson, Simon. “Dynamics of national and global competition in higher education.” Higher education 52.1 (2006): 1-39. Print.

Thorsen, Dag Einar. “The Neoliberal Challenge. What is Neoliberalism?” Contemporary Readings in Law and Social Justice 2 (2010): 188-214. Print.

Swank, Duane, and Hans-Georg Betz. “Globalization, the Welfare State And Right-Wing Populism in Western Europe.” Socio-Economic Review 1.2 (2003): 215-245. Print.