Students Hard Hit By Grant Delay

Sydney Morning Herald

Friday January 8, 1993

By TONY KLEU Higher Education Writer

A Federal Government decision to pay Austudy in arrears has deprived 95,000 continuing students of one week's cash - up to $143 - this week, leaving many short of money for rent or food.

Notice of a change in the payment system was issued last month with notices of assessment to students continuing their studies this year, but student welfare officers said many did not understand that they would lose money.

Until now, half the fortnightly payment was made in advance, but the Department of Employment, Education and Training (DEET) decided to tighten financial control by paying students a single week's Austudy on January 6, with the next double payment due on January 21.

The result, student welfare officers said yesterday, was catastrophic for some students. Advice centres, normally quiet until February, already have students queueing up for loans.

Mr Terry Foye, a student welfare officer at Wollongong University, said students were suffering severely.

"There is very little understanding of the position of independent students who have left home on Austudy ... of the costs of education without the cushion of family or friends."

Mr Foye counselled five students last year, men and women, who resorted to prostitution to meet living expenses, and he fears the arbitrary deferment of a week's Austudy support may push more over the edge.

"If your only income is Austudy and you have no cushion, no family support, imagine what the sudden loss of a week's income would do to you just after Christmas. You still have to feed yourself, pay for fees and textbooks."

A University of NSW student, Mr Paul Hunt, 27, said: "On January 6, the day I had to pay $175 for a fortnight's rent, I received only $143 from Austudy and can't contribute to the food bill. I'm lucky I am sharing with friends who will carry me.

"But for people staying on their own this will be devastating."

The Minister for Higher Education, Mr Baldwin, has rejected requests that he order a special one-off payment next week, to be clawed back over the year, but has instructed DEET's Student Assistance Centres to issue advances in cases of "genuine financial need", a spokeswoman said yesterday.

Students on Austudy or Abstudy who are unable to cope with the reduced payment should contact their nearest assistance centre: Liverpool, 827 8888; Blacktown, 672 5555; Haymarket, 911 0300; country 008 043 401.

© 1993 Sydney Morning Herald

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