Builders welcome proposal for trade students to be offered HECS-style loans

A federal government plan to offer HECS-style loans to students studying a trade or technical skill has been welcomed by building groups.

Writing in The Australian, Prime Minister Julia Gillard notes that although university students can study now and pay back their course costs when they get a well-paying job, students getting high-level vocational skills, including trade and technical skills, cannot.

"We will ensure that students have the same right to borrow so they can study, to get a loan they can pay back from increased earnings," Gillard says.

"The most determined have always made their way. Now we're going to make it easier for them, and for others who have been put off by upfront costs."

According to the report, the plan will be put to the Council of Australian Governments meeting in March.

Master Builders Australia national director of training Alex Maroya says the plan would increase training opportunities for the sector, which is welcomed, but the devil will be in the detail.

"The main pathway into the industry is still the apprenticeship system, so this will largely target people in the industry who are better established," Maroya says.

He says the proposal is an expansion of existing program that provide a range of subsidies for higher-level staff.

The plan would likely get through COAG, he adds.

This article originally appeared on SmartCompany.