By Kate Williams A $400 million fund to help young Australians finance their education has been announced.
The Government has released a plan for young people to fund their tertiary education with a range of financial products that can include loans, shares and shares in new companies.
The new products, dubbed Young Australians, will be sold through the Government’s new Young Australians Fund (YAF), and will help provide financial assistance to young people and their families who have not yet received an A-Level.
The funds will be available to all students in Australian higher education and will be managed by the Higher Education Financing Agency.
It will include loans of up to $10,000, shares of up for sale to qualified investors of up $100,000 and shares of shares of $50,000 to eligible investors.
The scheme will also offer grants of up from $500,000.
“The YAF will be a new type of finance for students that can be used in conjunction with other financial products,” said Education Minister Christopher Pyne.
“It will be designed to give students access to finance that is available to everyone, not just the most affluent.”
The new YAF is expected to be rolled out to schools in October.
“This new scheme will enable young Australians in their late 20s and early 30s to fund tertiary schooling for up to five years, giving them a fresh start in life and enabling them to secure the future they want,” he said.
“These young Australians will be able to start their education at a time when many Australians are not yet ready for a higher education, and will have the support and skills to succeed.”
The scheme also aims to help students from Indigenous communities to get access to a degree.
A total of $2.4 billion has been earmarked for the scheme, with a further $200 million for the first three years.
The funding will be paid back by the Government through the new Young Australia Fund, which will be used to help the Government and universities provide students with financial assistance.
The fund is currently being run by the Department of Education, but it will be replaced by the Young Australians fund.