More calls for interest to put back on student loans.
The Productivity Commission has released a report on the tertiary sector this morning, with 49 recommendations.
Commission chair Murray Sherwin told Rachel Smalley the current loan system isn't working.
"It's very expensive. The government writes off about $600 million a year on student loans. We think that you could actually spend the money more effectively, better targeted at students to get better effect."
The commission is also calling for University Entrance to be scrapped.
Mr Sherwin said major tweaks are needed.
"The universities use different criteria for their own selection into courses, often higher than University Entrance. There are universities that were also telling us they think they would be able to offer access to students who hadn't got UE."
LISTEN ABOVE AS MURRAY SHERWIN SPEAKS WITH RACHEL SMALLEY