As reported in The Australian, almost half of university students from a regional background drop out of their courses. This is a very concerning statistic, one that regional universities are sadly all-too familiar with.

Regional universities like Charles Sturt play a critical role in training the nation’s core workforces in education, healthcare and social services. At Charles Sturt, 40 per cent of domestic students doing a Bachelor’s degree are studying to become teachers, nurses, social workers or paramedics.

There is a demonstrable demand for these students in the workforce: for the seventh year in a row, Charles Sturt has the highest graduate employment rate in the country. Australia desperately needs these students to become graduates, especially regional communities where the shortage of critical skills is felt most sharply.

So why are regional students dropping out in such high numbers?

Charles Sturt interviews students who withdraw from our courses to understand why they are leaving and what we can do to help them. Last year, two thirds of students who withdrew from their studies reported financial, employment and caring issues as the reasons.

Only 2 per cent stated that a poor educational experience led them to withdraw and only 5 per cent were transferring to a different university. The problem regional students face is not with the quality of education delivered by regional universities but with the unique economic challenges they face as regional students.

Very often, regional students are the first in their family to attend university, and/or are from lower socioeconomic groups, and/or don’t have the luxury of full-time study with family support. Yet income support payments for students are below the poverty line and means-tested out by even modest parental incomes.

These challenges are exacerbated for students undertaking placements, especially regional students who often have to relocate hundreds of kilometres from their homes, families and workplaces to complete this part of their course. The Government has responded in this year’s Budget with a welcome announcement of some payments for students undertaking mandatory placements, but more needs to be done.

Regional students, with higher rates of socioeconomic disadvantage, typically have less time to dedicate to their studies. In the Regional University Network, the average domestic undergraduate student is studying about 60 per cent of a full-time load. At the elite metropolitan Group of Eight universities, this figure is over 80 per cent.

Australian universities are predominantly funded according to student load and not an institution’s headcount of students. This means regional universities are at a double disadvantage in supporting students: our students often have increased support needs due to higher rates of socio-economic disadvantage, but precisely because of this disadvantage we receive less funding per student to support them.

The Government has indicated a clear commitment to supporting equity students and regional universities and is already making important steps towards this. But as the new funding system for universities is developed, it will be critical to take a coordinated approach to avoid unintended consequences.

Regional universities deliver high quality education where it is most needed - in regional communities. But both our students and our institutions face high costs in this delivery. We need a funding mechanism that recognises these costs for our students to flourish in regional Australia.

ENDS