Degree quantitative easing drives up university drop-outs

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By Leith van Onselen

In September 2016, it was revealed that drop-out rates for first year university students had hit an all-time high one-in-five, with the Grattan Institute’s higher education policy expert, Andrew ­Norton, claiming there was a correlation between drop-out rates and increasing enrolments, particularly among low-Australian Tertiary Admission Rank (ATAR) students.

On Sunday, the Grattan Institute released a report entitled Dropping out: the benefits and costs of trying university, which reveals that “more than 50,000 students who started university in Australia this year will drop out”, with students on average paying “$12,000 for their incomplete course”.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.