Deakin vice chancellor Jane den Hollander said south-west Victoria was a land of possibility but its year 12 attainment rate was too low to fully seize opportunities presented to its young people.

Her comments come as national university drop-out rates climbed to the highest level in eight years, according to the Federal Education Department.

“Further education, whether it’s university or TAFE, is so important for the careers of the future in both regional and urban Australia,” Professor den Hollander said.

“Cities like Warrnambool and areas like south-west Victoria need more young people in study or training. The rates of post-secondary attainment (in this region) are, to be frank, dismal. But there is strong work being done by schools, by parents to counteract that trend because it’s so vital for our future growth.”

A cross-sector initiative, Beyond the Bell, has been tasked with lifting south-west Victoria’s low year 12 attainment rate, which stands at roughly 57 per cent. The statewide average is 75 per cent.

Former premier Denis Napthine said south-west school leavers had the ability to be national success stories if they applied themselves through academic or practical study.

Federal Education Department figures show the national average attrition rate for first-year students reached nearly 15 per cent in 2013, the highest since 2005. At Deakin University, the number was better than average. The University of Tasmania had the highest rate of first-year drop outs.