University-based nursing education was introduced in Victoria, Australia, to redress the deficiencies attributed to the system of hospital-based training. The narrow and restrictive focus, maintenance of the subservient position of nurses, the employee status of students, an inadequate relationship between theory and practice and failure to keep pace with changes in the role of the nurse were the main deficiencies identified. This paper refers to a qualitative research study which examines the differences between graduates of a university-based and hospital-based psychiatric nursing program during the year following graduation. The findings suggest that the tertiary-based course had the potential to significantly redress some inadequacies of the hospital-based course to produce different qualities within its graduates.