More people set to apply for student banking?

Government efforts to increase the number of people in Australia with bachelors degrees could create a surge in demand for student banking products.

Under a new scheme, universities will be permitted to enrol as many as qualify and the government has set aside $1.2 billion to pay for 500,000 students in 2012, reports the Australian.

The measures are part of a drive to create more graduates between the ages of 25 and 34 by 2025.

If government targets are met by this time, 40 per cent of those in this age group may have needed student banking products as they will have been through university and come out with a degree.

Higher education establishments are also set to receive 3.8 per cent indexation this year, up one percentage point on the previous 12 months, which will help add $550 million to the sector.

This comes after the Professor Wellings, incoming vice chancellor at the University of Wollongong, told the same publication that unless the state meets the costs involved with educating more people, students could face higher fees if standards of learning are to be maintained.

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