While welcoming the Federal Government's focus on reform of the higher education sector, Charles Sturt University (CSU) Vice-Chancellor Professor Andrew Vann contends that "any reforms should acknowledge and address the specific challenges faced by rurally based regional universities".

"Rural universities have higher costs in delivering learning and research services to a widely dispersed population while playing an important role in providing the targeted skilled workforce to meet industry and rural needs," Professor Vann said.

In the submission recently presented by CSU to the Senate committee looking into higher education reforms, the Vice-Chancellor recognised the need of the Federal Government in current economic circumstances to address funding challenges in the sector, including through increases to student contributions, however he was concerned at the potential impact of fee deregulation on rural, regional and Indigenous students, from low socio-economic status (SES) .

"Significant increases could act as a significant disincentive for these students, whose participation rate is already below average, to undertake higher education."

"This potential impact is one that needs to be considered. An alternative may be to examine other models for varying the level of student contributions, while avoiding the possible negative impact of total deregulation on participation rates amongst regional, rural, Indigenous, mature aged, part-time and low SES students."

"CSU supports calls for the Federal Government to develop a set of policy responses to help rurally based regional universities invest in their communities.  This would help to address long-term structural market imperfections in rural areas."

Professor Vann opposes the proposed 20 per cent reduction in Commonwealth funding for undergraduate university courses, as well as changes to indexation and proposed changes to existing cluster arrangements for course funding.

"These changes will result in universities having to make up funding shortfalls with higher costs to students and will significantly impact a number of CSU's primary teaching areas, which address regional needs and skills shortages," he said.

"We also specifically oppose the proposed scholarship scheme as it will distort the higher education market, resulting in an uneven playing field for rurally based regional universities."

CSU also joins Universities Australia which has noted that the current proposed change to the Higher Education Loan Program will lead to higher debt levels and longer payback periods for students, particularly impacting lower income earners and those taking time out of the workforce for parenting duties.

"In light of these concerns, Charles Sturt University is opposed to the proposed changes to the indexation of student debts and the lowering of the minimum repayment threshold to $50 637 from the current $56 263, as these will particularly impact in rural and regional areas," Professor Vann said."Rural and regional salaries for many professions are generally lower that the equivalent in metropolitan areas, leading to higher debts and longer times needed to repay."