Nursing, teaching, midwifery and social work students will be eligible for a $320-a-week payment in a bid from the federal government to ease the financial burden of unpaid placements.
A day after revealing it will wipe $3bn worth of student debts, on Monday, the Federal Government revealed its plan to tackle “placement poverty”.
Benchmarked to the single Austudy per week rate, the payment is expected to help about 68,000 university students and 5000 VET students annually.
Education Minister Jason Clare said it would help students who are struggling to pay the bills to be able to finish their courses.
“Placement poverty is a real thing,” Mr Clare told ABC Radio.
“We’ve got lots of people, whether they’re teaching students or nursing students, telling me they can afford to do the degree … but they can’t afford to do the prac,” he said.
“This will provide that bit of extra help to pay the bills, put food on the table, pay for transport, sometimes the relocation costs that come with practice.”
The scheme will start July 1 next year, however not all students will be eligible.
It will be means-tested and paid in addition to any income support the student may already be receiving.
Mr Clare said eligibility could depend on whether students lived at home or independently or worked more than 15 hours a week.
“This is the first time that this has happened,” he said.
“It’s happened in response to calls from students both teaching students and nursing students and social work students across the country.”
The Universities Accord, the first broad review of the higher education system since 2008, released its final report in February.
Financial support for students undergoing placements was a key recommendation from the review.
National Union of Students president Ngaire Bogemann described the scheme as a “massive win” for uni students.
“I’ve heard horror stories of nursing students, of students doing placements having to live in their cars while they’re undertaking full-time unpaid work,” she told the ABC.
“This is just relief for students.”
The Australian Nursing and Midwifery Federation (ANMF) has also commended the Albanese Government on new support payments for student nurses and midwives undertaking clinical placement training.
ANMF federal secretary Annie Butler said the payments would finally recognise the financial and social pressure students, nurses, and midwives face while completing their minimum of 800 hours in placement.
“It’s a huge financial and social burden on them to complete their nursing and midwifery course at a time when the cost-of-living pressures continue to grow,” Ms Butler said.
“We have seen an increasing number of students dropping out of courses – which means Australia has lost future nurses and midwives because they can’t afford to complete their studies.
“This new payment will help alleviate these costs and better support students who need to complete their clinical placements before starting their career. Alleviating financial burdens will also encourage more students into the nursing and midwifery workforce – supporting them through their, often, challenging courses.”