University of Wollongong student Dylon Tomasi fears the Federal Government's "latest attack" on the sector will create a two-tiered education system.
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"There will be those who can afford a high quality education and others who will fall by the wayside," UOW's delegate to the National Union of Students (NUS) said.
The Wollongong Undergraduate Student Association (WUSA) member's comments come after revelations university students who fail half their subjects in their first year will lose access to government subsidies and loans.
The measures to prevent people taking on study loads they cannot handle have been revealed in a newly released bill covering the government's sweeping overhaul of university funding.
In an effort to crackdown on excessive enrolments and ballooning HELP debts that are not being repaid, universities will face tougher requirements to verify people's academic suitability for their chosen courses and monitor their ongoing progress.
Students will also be able to wipe their debts for subjects when their progress has been harmed by special circumstances.
"These measures will ensure students can't take on a study load they won't complete, leaving them without a qualification but a large debt," Education Minister Dan Tehan told the Sydney Morning Herald.
The new measures come on top of changes made in 2018 that imposed a $100,000 limit on the HELP debt a person can accrue. The government held $66.6 billion worth of HELP debt in 2018-19, with more than 15 per cent of it not expected to be repaid.
Mr Tomasi said an overwhelming majority of domestic students rely entirely on the HECS system to study.
"Those students who have to work and have other life problems to deal with are being unfairly targeted by the government," he said.
"It just seems like the government is pulling out all stops to cut funding university students.
"We weren't happy when they proposed raising the fees of arts degrees by 113 percent. This is just another smack in the face."
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