The cost of university education to jump 32 per cent in the next decade

by User Not Found | Feb 29, 2016
ASG Planning for University Index

Thinking about the cost of a university education may seem a bit like a thought for the distant future for those of us with young children, but it is certainly a weighty subject for parents with older children and students on their tertiary education journey.

According to the latest ASG Planning for University Index the cost of a university education is estimated to rise by 32 per cent in the next decade.

The first year course costs for accounting, law, veterinary science and medicine degrees are estimated to jump from $10,440 per year in 2016 to $13,801 in 2026, while the cost of a journalism, nursing, teaching or psychology degree in the first year, is estimated to rise by $2,014 to $8,270 in 2026.

The ASG Planning for University Index, compiled by the member based organisation, considers a range of variables including university course fees and expenses for transport, computers, study placements and rent to estimate the true cost of a university education.

The ASG Cost of University Index also reveals that living costs are set to increase by up to 23 per cent in the next decade for students who live away from home, with a three year degree estimated to cost up to $102,580 in living expenses by 2026, a jump of almost $20,000.  Students who live at home while attending university during the same period, are estimated to be up to $63,712 better off than students who rent.

When university course costs and living expenses (renting) are combined, ASG estimates the cost of a four year law degree will jump by $40,256 in the next decade to $195,909 in 2026, with a six year medicine degree forecast to rise by $62,295 to $301,159 in 2026. 

ASG CEO John Velegrinis says a university education can put significant financial pressure on family budgets. 

“Many parents plan for their children’s early learning, primary and secondary education, only to be blindsided by university course fees and living expenses. 

“The cost of sending three children to university can place enormous strain on the family budget and could cost some families close to one million dollars,” says Mr Velegrinis. 

He says students who live at home while attending university will be financially better off than students who rent.

Peter Halat is in his second year of his Bachelor of Science (Advanced Research) degree at Monash University and drives more than 50 kilometres each day to attend his lectures and labs on campus. 

“The cost of petrol has been quite a jump from my usual transport costs and I am also buying textbooks and stationary. University is expensive and I work part-time in a supermarket and also do private tutoring to support myself a bit more financially. 

“Living at home has definitely relieved the financial burden but I am looking at moving closer to Monash and continuing on with a PhD. I am always looking to save money and prepare myself just in case if I need to buy something in an emergency.

“Being with ASG has been really beneficial and I am really thankful that my parents were able to plan and save for my education all those years ago. I’ve also considered studying abroad so that may be possible too,” said Mr Halat. 
Emily Dafter lives away from home to study a Bachelor of Arts and Bachelor of Communications and Media at the University of Notre Dame in Sydney. 

“I always knew that it was going to be expensive and living costs are ridiculous. I am working 20 hours a week and paying for things I would have never been paying for at home like rent which is about $400 a fortnight and transport.

“Receiving the ASG scholarship payments has been really helpful and I am so thankful to my parents. It also gives them peace of mind when I tell them what I have used the scholarship money on because I normally do not share too much of my financial information with them,” said Ms Dafter. 

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