More than 700,000 Australian students enrolled in Escrow Training classes last year, a surge after the Reserve Bank lowered the threshold for enrolment.
The classes, offered by Australia’s three largest lenders, offer the opportunity for students to take courses on subjects such as financial planning, financial planning for seniors, personal finance, savings, life insurance and property, according to the Reserve.
There is a cap of four courses per year.
It is not clear how many students took the courses.
Students can take the courses up to a year before they need to reapply for a job or become eligible for an affordable housing guarantee.
But the Reserve said students were still required to take the course at least once every three years, and a cap would only apply to courses that were offered by the bank’s third-party provider.
What is Escrow?
“Escrow Training is designed to provide students with a framework to plan their financial futures and gain confidence in their ability to meet their own financial and financial responsibility,” the Reserve says on its website.
“Escalation and escalation in Escalation Training can be achieved by using the same techniques, but this time it is delivered as a training exercise that is intended to help students learn from mistakes, learn from successes and develop their ability as financial planners.”
It says students are given three options to choose from.
If they choose “Escalating Training”, they will receive the following four courses: “Basic Financial Planning” “Financial Management for Senior Citizens” “Personal Finance” The Reserve says that if a student chooses “Escending Training”, the course will be given three additional courses, including a “Financial Planner” course. They are: “Personal Finance: The personal finance course is designed for people aged 65 and over who are concerned about their financial situation and who are prepared to take on a higher risk in order to make the best use of their resources,” the website says.
In a statement, the Reserve’s chief executive officer, Ian Narev, said the Reserve would continue to work with the government to reduce the number of people who would qualify for the program.
“Our primary focus is to ensure that those who can afford to pay for Escalating and Escalving training are able to do so,” Mr Narev said.