Government mulls over changes to student loans system

The Gillard government is considering the prospect of altering legislation that could have a huge bearing on how student loans are allocated.

Under the terms of the student learning entitlement policy, academics are allowed to claim student finances from the state for seven years before being forced to pay any additional fees out of their own pockets.

This was introduced in 2005 and was aimed at preventing "professional students" from racking up debts that they were never likely to repay.

However, Labor members are keen for the system to be tweaked in order to reduce the burden felt by medical students in particular, the Sydney Morning Herald reports.

The Coalition is keen for the ruling to stay though and universities spokesperson Brett Mason told the publication that changes could lead to people taking "never-ending" courses.

Last month, it was reported that the Inland Revenue in New Zealand was taking a more aggressive approach to tracking down students who had moved to Australia in an attempt to get away with not paying back their student loans.

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