Labor's new higher education policy will focus on improving quality, as well as getting more disadvantaged students into courses.
Opposition Leader Bill Shorten used a speech at his alma mater Monash University on Wednesday to outline Labor's policy direction.
Mr Shorten said Labor in government had set two goals: to lift bachelor degree holders to 40 per cent of all Australians by 2025 and ensure one in five students in universities are from disadvantaged families.
He said Australia was on track to meet the first goal and about 17 per cent of uni students were now from disadvantaged backgrounds.
While these goals were about improving access and equity, the next step for Labor must focus on guaranteeing quality.
The Labor leader said a recent study showed students with an ATAR score of 59 or below who started their studies in 2005 found that by the end of 2012, just over half had completed a degree.
Another study found that nearly a quarter of students with an Australian Tertiary Admission Rank below 50 don't re-enrol for a second year.
The challenge was to ensure accessibility and equity and grow participation rates without undermining the quality and value of a university education, he said.
"It's not about getting first-years signed up and in the door," Mr Shorten said.
"Rather, we must ensure that when you leave university after three, four or five years, your qualification equips you with the confidence, skills and knowledge to thrive in the new economy."
As well, universities needed a long-term funding model which could not only lift quality but give students the individual attention they need to prevent them from slipping through the cracks.
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