Coalition call for more rural uni cash

A Senate committee says the government's higher education overhaul needs tweaking to make sure regional universities and students don't miss out.

Federal MP Clive Palmer

(AAP)

Coalition senators want the government to give rural universities more money and reconsider plans to hike the interest students must pay on debt.

They also want to ensure regional and disadvantaged students get the scholarships that would be funded from increased university fees.

The government wants to deregulate fees, cut government per-student funding, expand Commonwealth support to private providers and to courses below bachelor degree level and charge real interest on student debts.

Labor and the Greens oppose all changes and made their case again as part of a Senate committee report on Tuesday.

The main report - effectively authored by the Liberal and two Nationals senators - supports complete deregulation but says it would be against the national interest for regional students to find themselves locked out of university education.

The committee acknowledged rural and regional providers will face difficulties in a deregulated system and recommends a structural adjustment package be paid.

It wants the government to have another look at HELP indexation to make sure people aren't overly burdened by debt.

A hybrid model in which no real interest is charged on debts until a graduate earns enough to start paying it back has merit, the committee said.

Universities Australia had been calling for the recommended changes but wants less harsh funding cuts.

"With changes, the Senate can ensure the legislation is fair for students, fair for families and fair for taxpayers," UA chief executive Belinda Robinson said.

Labor senators Kim Carr and Sue Lines argue the reforms will Americanise Australia's system and make $100,000 degrees the norm.

The need for extra cash to help regional universities was an admission of failure, they said.

The coalition senators want the government to run an ad campaign "to address the organised scare campaigns about impending fee increases".

It would compete with Opposition Leader Bill Shorten's new ALP campaign to force the government to drop its uni changes.

"We will fight the Liberals' debt sentence and we will prevail," Mr Shorten said.

Australian Greens senator Lee Rhiannon called for an inquiry into making universities free for students.

Education Minister Christopher Pyne was glad the committee made constructive suggestions.

This had highlighted the need for urgent reform, he said.

He'll have to convince crossbench senators that's the case when they start debating the bill, probably on Wednesday.

Palmer United leader Clive Palmer continues to insist his party won't vote for it.

"I've been very impressed by the arguments of Joe Hockey on YouTube where he said we should have free university fees - he's won me over so we'll have to vote against it," he said, referring to footage of Mr Hockey as a university student.

If no PUP senators can be persuaded to the government's perspective, the reforms Mr Pyne had hoped to pass this year will be dead in the water.

There are 10 sitting days left in the year.


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