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Students faces with study decisions

tight-rope-walker-small Many students wanting to head to TAFE or University are faced with a major decision on if they can afford to.

In the past student would become independent from parents  and claim youth allowance so they can attend TAFE or University.  Changes to youth allowances  will now require students to live away from their parents for 18 month prior to starting studies to be classed as independent. 

 

Low income families will still be able to apply for youth allowance and enrol in courses but for those on higher combined incomes the student will have to fund themselves.

 

Leah Johnson finished her VCE this year. Her entry score was not high enough to attend the university she was wanting to attend. Her option was to wait 18 month and she would then be able to enrol in her chosen course. Under the new rule Leah needs to work 18 months to prove she is independent of her parents.

 

A job offer was made to Leah if she completed a TAFE certificate course. The course cost $5000 plus the cost of material, book, and travel.

 

Most student would find this impossible to achieve without the help of parents but some parent claim they cannot afford to pay these types of fees.

 

The key concern of Government has been to redress the current inequities of the Youth Allowance.

if a family’s income is $80,000 per year, under the old system the parental income test was too low for this family to receive any support.

 

Under new arrangements for the Youth Allowance, the maximum rate threshold will be aligned with the Family Tax Benefit A income test (currently $42,559) with support tapered down after this. The changes will have variable impact depending on family income.

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