Microcredentials should not get FEE-HELP assistance

In the last two years the government – the current and former governments are indistinguishable on this point – has encouraged universities to offer ‘microcredentials’, which certify and sell smaller bodies of knowledge and skills than an AQF qualification.

Government support for microcredentials

Late last month Labor reintroduced a Coalition amendment to the Higher Education Support Act 2003 that would extend FEE-HELP income-contingent loans to microcredentials, although with the potentially limiting caveat of ‘that meet the requirements specified in the FEEā€‘HELP Guidelines.’

Last week they promulgated a legislative instrument for the Coalition’s ‘microcredential pilot’, which offers subsidies to Table A universities to develop microcredentials. According to the explanatory memorandum ‘the purpose of the program is to examine newer, shorter forms of industry focused learning aimed at supporting people to upskill and reskill in areas of national priority such as health, teaching, IT and engineering.’

The pilot does not seem designed to attract applications – universities would have to give away their IP and accept Job-ready Graduates Commonwealth and student contributions – but the bigger issue is FEE-HELP.

Do microcredentials require government intervention?

Contrary to the impression given by some microcredential discussions, people taking short courses to increase their skills is nothing new. The ABS has asked about structured learning not for a credential many times over decades, and always found it is the most common form of post-school education on a headcount basis. The latest ABS survey is no different. Short courses overtake credentialed education by a person’s late 20s, as the chart below shows.

Microcredentials add certification and perhaps standardisation to short courses, which might increase short course informational value in the labour market. But lack of these things has not stopped this market functioning on a large scale. Proxy indicators of employee suitability such as qualifications are important for young or career shifting job applicants, but for people already established in their careers observation – directly by employers, by reputation or referee report – is usually the main information source.

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